OpenAI is reorganizing its plans after internal concerns about product performance and increasing pressure from competitors. In a memo sent to staff, CEO Sam Altman declared a “code red” and explained that the company would temporarily shift all attention to improving ChatGPT.
Several projects that were intended to widen OpenAI’s portfolio, including personal assistants, advertising tools and a news summary feature, have been paused so that teams can focus their time and resources on strengthening the core product.
The decision follows a series of public benchmark tests where OpenAI’s most recent model, GPT-5, was outperformed by Google’s Gemini 3 and Anthropic’s Claude Opus 4.5.
These results, combined with new data showing that users are spending more time with Gemini, have raised questions about whether OpenAI’s early lead is starting to narrow. In response, the company has begun slowing expansion and redirecting resources toward improving ChatGPT.
Why It Matters: Success in AI depends on continued strength in performance and reliability. OpenAI’s decision to pause new product lines and focus on ChatGPT responds to growing pressure to maintain user trust and technical credibility. Competing models are beginning to show measurable gains in capability and user engagement, which has raised the stakes for staying ahead.
- Altman Calls for Full Attention on ChatGPT: In the internal memo, Altman told employees that OpenAI is entering a period of focused work to improve ChatGPT’s speed and reliability. To support this effort, the company is delaying the release of several planned tools, including the Pulse news feed, along with upcoming health agents and advertising features. Teams involved in these changes will meet daily to coordinate updates and monitor progress.
- Competitors Now Lead in Performance Testing: Benchmark data published in recent weeks shows that Google’s Gemini 3 and Anthropic’s Claude Opus 4.5 have surpassed GPT-5 in several key performance measures. Google credited the improvement to custom chip design and revised training methods. These results have raised concerns at OpenAI about falling behind in areas that were once considered its strength.
- User Engagement Is Starting to Drift: While ChatGPT still draws more than 800 million weekly users, recent analytics show that users are spending more time with Google’s Gemini. According to the Wall Street Journal, Gemini’s monthly active users climbed from 450 million in July to 650 million in October, following the addition of new features like image generation.
- New Model Expected Next Week: In response to these trends, Altman said OpenAI will soon release a new reasoning model that is expected to outperform Gemini. Although details are limited, the launch is being planned as a direct response to recent setbacks in model comparisons and is meant to help OpenAI regain its technical edge. The model may also improve the overall user experience within ChatGPT.
- OpenAI Faces Tighter Resource Limits: One factor shaping the company’s response is cost. OpenAI is not yet profitable and relies on external funding to support its computing needs. In contrast, Google can fund its AI efforts through revenue from other parts of the company. This difference puts added pressure on OpenAI to make careful trade-offs about how it uses time and infrastructure, which may help explain the decision to narrow its focus instead of competing across multiple areas at once.
Go Deeper -> OpenAI’s Sam Altman declares ‘code red’ after rivals make advances – Financial Times
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