OpenAI Refocuses Strategy Amid AI Rivalry Intensifies
OpenAI Chief Executive Sam Altman has reportedly issued a “code red” directive urging employees to prioritize upgrades to ChatGPT while pausing several other product initiatives, according to The Wall Street Journal. In an internal message circulated Monday, Altman emphasized the need to improve the chatbot’s speed, reliability, and personalization capabilities.
The push comes as ChatGPT marks its third anniversary, a period during which it ignited worldwide interest in generative AI and positioned OpenAI as an early industry leader. However, competition is intensifying, particularly from Google, which recently introduced Gemini 3, the latest iteration of its AI assistant. Altman noted earlier this year that ChatGPT now has more than 800 million weekly users, yet the company—valued at roughly $500 billion—remains unprofitable and has taken on more than $1 trillion in obligations to cloud-computing and semiconductor partners essential to its AI infrastructure.
Concerns have grown among investors that the company may struggle to generate sufficient revenue to meet expectations from key supporters such as Oracle and Nvidia, fueling broader fears of an AI market bubble.
Nick Turley, OpenAI’s vice president and head of ChatGPT, wrote on social media Monday that search represents a major opportunity for the platform as the company works to make the system more powerful, intuitive, and personalized.
OpenAI currently earns revenue primarily through paid ChatGPT subscriptions, while most users rely on the free version. The company launched its own web browser, Atlas, in October as part of an effort to challenge Google Chrome amid a shift toward AI-driven online queries. Despite these moves, OpenAI has not yet adopted an advertising model similar to Google’s search business.
According to the Journal, Altman said in his memo that OpenAI will postpone work on several projects, including advertising initiatives, AI agents for health care and retail, and a personal assistant known as Pulse.
