OpenAI Declares 'Code Red' As Google Catches Up In AI Race

OpenAI has reportedly issued a "code red" on Monday, pausing projects like ads, shopping agents, health tools, and its Pulse assistant to focus entirely on improving ChatGPT. "This includes core features like greater speed and reliability, better personalization, and the ability to answer more questions," reports The Verge, citing a memo reported by the Wall Street Journal and The Information. "There will be a daily call for those tasked with improving the chatbot, the memo said, and Altman encouraged temporary team transfers to speed up development." From the report: The newfound urgency illustrates an inflection point for OpenAI as it spends hundreds of billions of dollars to fund growth and figures out a path to future profitability. It is also something of a full-circle moment in the AI race. Google, which declared its own "code red" after the arrival of ChatGPT, is a particular concern. Google's AI user base is growing -- helped by the success of popular tools like the Nano Banana image model -- and its latest AI model, Gemini 3, blew past its competitors on many industry benchmarks and popular metrics.

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