Wed Dec 03 09:50:00 UTC 2025: OpenAI Sounds the Alarm as Google’s Gemini 3 Heats Up AI Chatbot Race
San Francisco, CA – OpenAI CEO Sam Altman has reportedly issued an internal “code red” to staff, emphasizing the critical need to enhance ChatGPT amid growing competition from Google’s newly released Gemini 3 AI model.
According to sources at The Information, Altman acknowledged the challenges posed by Gemini 3, which has outperformed ChatGPT on various benchmarks. He cautioned employees that the launch could lead to “temporary economic headwinds” for the company and braced them for a period of intense pressure.
The alarm bells are ringing despite ChatGPT boasting a substantial user base of 800 million weekly users. Google’s vast resources and profitable search business give it a significant advantage in the AI arena. Salesforce CEO Marc Benioff recently declared his switch to Gemini 3, praising its superior reasoning, speed, and image/video capabilities.
In response to the increased competition, OpenAI is prioritizing improvements to ChatGPT, even delaying planned advertising integrations to focus on enhancing the core product. Nick Turley, head of ChatGPT, recently reiterated the company’s commitment to making the chatbot “more capable, intuitive, and personal” as it celebrates its third anniversary.
Despite being a loss-making company, OpenAI, which reached a valuation of $500 billion, is backed by substantial funding from firms like SoftBank and Microsoft. The company anticipates generating over $20 billion in revenue this year and aims for “hundreds of billions” by 2030. This ambitious revenue target is crucial, given OpenAI’s commitment to investing $1.4 trillion in datacentre costs for AI system training and operation over the next eight years.
In other industry news, Apple has appointed Amar Subramanya, formerly a Microsoft executive and a Google veteran, as its new Vice President of AI, signaling a renewed focus on AI development to catch up with competitors.
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