Sam Altman Issues ‘Code Red’ to Accelerate ChatGPT Upgrades Amid Intensifying AI Competition

OpenAI CEO Sam Altman has reportedly issued a “code red” directive, urging employees to prioritize enhancements to ChatGPT and pause other product initiatives, The Wall Street Journal reported.

According to the memo, Altman told staff that significant improvements are needed to boost the chatbot’s speed, reliability, and personalization. The move comes as ChatGPT marks its third anniversary—three years after it ignited global interest in generative AI and gave OpenAI an early industry advantage. That lead is now being challenged by rivals such as Google, which recently launched Gemini 3, the latest version of its own AI assistant.

OpenAI did not immediately comment on the report, which was also covered by The Information.

Altman recently noted that ChatGPT now serves more than 800 million weekly users. Despite a valuation of $500 billion, OpenAI remains unprofitable and has taken on more than $1 trillion in financial commitments to cloud providers and chip suppliers, raising investor concerns about the sustainability of the AI boom.

Nick Turley, OpenAI vice president and head of ChatGPT, wrote on social media that online search represents a major growth opportunity as the company works to make ChatGPT more powerful and more personalized. While OpenAI earns revenue from premium ChatGPT subscriptions, most users remain on the free tier. The company also launched its Atlas web browser in October to challenge Google Chrome, though it has yet to introduce advertising—a major revenue source for Google’s search business.

Altman’s memo reportedly stated that the company will postpone work on advertising, health and shopping-focused AI agents, and a personal assistant project called Pulse.

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