Monday, December 1, 2025

OpenAI CEO Cautions That Google’s AI Advancements Could Lead to Short-Term Economic Challenges

Sam Altman, CEO of OpenAI, has expressed concerns that Google’s advancements in artificial intelligence, particularly with its Gemini 3 AI, could create “temporary economic headwinds” for OpenAI. In a memo, he acknowledged that Google’s new AI may have outpaced OpenAI’s technology, indicating a need for improvement. Despite OpenAI’s valuation at $500 billion, rivals like Anthropic, founded by former OpenAI employees, are gaining traction in developer revenue. Google is effectively integrating its Gemini chatbot into services like Google Search, further closing the gap with ChatGPT. OpenAI is also facing challenges, expecting to spend over $100 billion to achieve human-level AI and seeking additional funding. Altman noted Google’s excellent work in pretraining AI models, prompting OpenAI to develop a new model, Shallotpeat, to address these issues. OpenAI aims to explore bold ideas, including reinforcement learning, even if it risks falling behind temporarily.

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