OpenAI declares ‘code red’ as Google catches up in AI race | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessCreatorsMobilePolicySecurityTransportationReviewsExpandLaptopsPhonesHeadphonesTabletsSmart HomeSmartwatchesSpeakersDronesScienceExpandSpaceEnergyEnvironmentHealthEntertainmentExpandGamesTV ShowsMoviesAudioAIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee All ShoppingCarsExpandElectric CarsAutonomous CarsRide-sharingScootersOther TransportationFeaturesVideosExpandYouTubeTikTokInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.OpenAI declares ‘code red’ as Google catches up in AI raceComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AITechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechOpenAI declares ‘code red’ as Google catches up in AI raceGoogle’s own ‘code red’ response to ChatGPT has started paying off.Google’s own ‘code red’ response to ChatGPT has started paying off.by Robert HartCloseRobert HartAI ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Robert HartDec 2, 2025, 11:40 AM UTCLinkShareImage: The VergeRobert HartCloseRobert HartPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Robert Hart is a London-based reporter at The Verge covering all things AI and Senior Tarbell Fellow. Previously, he wrote about health, science and tech for Forbes.The tides are turning in the AI race, and the pressure is getting to OpenAI. Chief executive Sam Altman reportedly declared a “code red” on Monday, urging staff to improve its flagship product ChatGPT, an indicator that the startup’s once-unassailable lead is eroding as competitors like Google and Anthropic close in.In the memo, reported by the Wall Street Journal and The Information, Altman said the company will be delaying initiatives like ads, shopping and health agents, and a personal assistant, Pulse, to focus on improving ChatGPT. This includes core features like greater speed and reliability, better personalization, and the ability to answer more questions, he said.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.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.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Robert HartCloseRobert HartAI ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Robert HartAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIGoogleCloseGooglePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GoogleNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularNetflix kills casting from phonesThe Nintendo Switch 2 got its first-ever discount during Cyber MondayThese great Cyber Monday tech deals will likely be gone tomorrowMKBHD is taking down his wallpaper appApple’s smallest iPad just got its biggest price cut for Cyber MondayThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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OpenAI is responding to increased competitive pressure, particularly from Google, with a significant shift in strategy marked by what internal sources describe as a “code red” situation. This declaration indicates a recognized and substantial deterioration in the company’s perceived lead within the rapidly evolving artificial intelligence landscape. The core of the issue stems from the unexpected and disruptive arrival of ChatGPT, spearheaded by OpenAI, which prompted a swift and forceful response from Google. Google’s own internal acknowledgment of the threat resulted in its declaration of a “code red,” mirroring OpenAI’s move and underscoring the seriousness with which the company views the challenge.

The immediate operational adjustments implemented by OpenAI, as communicated through a memo to staff, center around a prioritization of improvements to its flagship product, ChatGPT. Specifically, the company is postponing several planned initiatives — including advertising integration, shopping capabilities, and the development of health agents and a personalized assistant named Pulse — to dedicate resources entirely to bolstering the chatbot's performance. These revisions comprise efforts to enhance speed, increase reliability, improve personalization, and expand the chatbot’s capacity to answer a wider range of questions effectively. Furthermore, a daily call has been established for those responsible for these improvements, and temporary team transfers are being encouraged to accelerate development timelines.

This situation represents a critical inflection point for OpenAI, considering the considerable financial investment – hundreds of billions of dollars – the company has made to fund its ambitious growth strategy and to determine a viable path toward long-term profitability. The urgency is compounded by the parallel advancements being made by Google. Google’s AI user base is experiencing a demonstrable increase, largely driven by the success of models like Nano Banana, and, crucially, its latest AI model, Gemini 3, has outperformed competitors across numerous industry benchmarks and key performance indicators.

The dynamic between these two technological giants highlights the intense competition within the field of artificial intelligence. Google’s relatively rapid catch-up demonstrates a profound understanding of the market’s demand for sophisticated AI tools and the potential of its own technological capabilities. OpenAI’s “code red” response, in turn, powerfully conveys the recognition that complacency poses a significant risk and that maintaining a dominant position in the AI sector requires sustained, aggressive efforts. The company appears to be reacting to a very real threat, prioritizing operational adjustments to address concerns and rapidly accelerate development while seeking to regain a competitive advantage.