News Summary

OpenAI CEO Sam Altman has declared a ‘code red’ to accelerate improvements to ChatGPT in response to growing competition from rival AI developers, particularly Google’s new AI model, Gemini 3. This strategic move involves reallocating internal resources and delaying other planned initiatives, such as advertising and development of AI agents for health and shopping, to focus on enhancing ChatGPT’s capabilities. Despite being a loss-making entity, OpenAI has substantial funding from SoftBank and Microsoft, and it is committed to significant growth, with plans to invest $1.4 trillion in AI data centers over the next eight years. The company aims to increase its annual revenue from over $20 billion to ‘hundreds of billions’ by 2030. OpenAI’s flagship product, ChatGPT, currently boasts 800 million weekly users, but the advent of Google’s Gemini 3, which has shown superior performance on various benchmarks, poses a challenge. This development has prompted OpenAI to prioritize making ChatGPT more intuitive and globally accessible. Meanwhile, Apple’s recent appointment of Amar Subramanya as vice-president of AI highlights the ongoing competitive pressures in the AI sector.