(DDM) – OpenAI has reportedly declared a “code red,” halting several new initiatives, including ad integration and its Pulse assistant, to concentrate entirely on improving ChatGPT’s core performance.
DDM gathered that this strategic pivot comes as rising competition from Google’s Gemini models threatens OpenAI’s dominance in the consumer AI market.
The AI sector has seen a full-circle moment. When ChatGPT first launched, Google declared an internal “code red” to accelerate its AI development. Now, the success of Gemini 3 and associated tools has forced OpenAI to adopt a similar emergency approach.
Internal memos reveal that OpenAI CEO Sam Altman has urged teams to prioritize enhancements to ChatGPT’s speed, reliability, and personalization capabilities. The urgency is driven by measurable gains in Google’s Gemini 3 model, which has surpassed competitors on key industry benchmarks and expanded Google’s user base through features like the Nano Banana image model.
To focus on the core product, OpenAI is postponing major planned initiatives that were previously central to monetization and growth. These include AI-powered shopping, health agents, and the company’s personal assistant, Pulse.
Altman has instructed development teams to participate in daily calls, and staff are being temporarily reassigned to accelerate critical improvements to ChatGPT. The aim is to refine the user experience, allowing the AI to answer a broader range of questions more intuitively while maintaining speed and reliability.
Experts see this move as indicative of the current AI arms race, where market leadership depends on delivering not just innovative features, but a fast, dependable, and deeply personalized experience to millions of users.
The “code red” highlights OpenAI’s shift from expansion-focused projects to a defensive strategy aimed at consolidating its position against a formidable competitor in Google, signaling a high-stakes phase in the AI industry.
Observers note that the next stage of the AI battle will be determined by which company can best balance performance, reliability, and user-centric features, ensuring sustained engagement and market dominance.
This emergency response underscores the intensity of competition in generative AI, reflecting how even market leaders must continually adapt to technological advancements and rival innovations.