In a recent memo, OpenAI’s CEO Sam Altman declared a “code red” amidst rising competition, particularly following Google’s launch of Gemini 3, which claims superiority over ChatGPT and Claude in various tests. This shift is pressing OpenAI to focus intensively on enhancing ChatGPT, which still boasts an impressive 800 million weekly users. Despite this strong base, Google’s Gemini has rapidly grown to 650 million users within months, benefiting from its integration with Google products.
Altman emphasized the urgency to improve OpenAI’s core offerings, especially as the company anticipates significant operating losses ($74 billion by 2030) and a challenging revenue trajectory. Contrarily, competitors like Anthropic are expected to break even by 2028. Google’s use of its proprietary Tensor Processing Units for Gemini, which are cheaper and more efficient compared to Nvidia’s GPUs, is further complicating the landscape. Investors are reacting, with Nvidia’s stock showing declines since the Gemini 3 launch.
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