According to ExtremeTech, OpenAI CEO Sam Altman declared an internal “code red” on Monday, roughly three years after ChatGPT’s public launch. He’s urging staff to prioritize improving ChatGPT as competitors like Google and Anthropic close the gap. In an internal memo, Altman said the company is pausing work on several initiatives, including advertising, shopping agents, health agents, and a personal assistant called Pulse. Resources are being reallocated to focus on core improvements like speed, reliability, and personalization. The company will now hold daily calls with ChatGPT teams and is encouraging temporary team transfers to accelerate development.
Full circle panic
Here’s the thing that makes this so juicy. We’ve come full circle. Remember when ChatGPT first dropped and Google declared its own “code red”? The panic was palpable. Now, the roles are seemingly reversed. Google’s Gemini 3 model is topping benchmarks, and its mobile apps are sitting at #2 on the “free productivity” lists, right behind ChatGPT. That Nano Banana image generator? It’s a hit. Basically, Google has stopped fumbling and started competing, hard. And OpenAI is feeling the heat in a way it probably hasn’t since, well, ever.
The strategy shift
So what does a “code red” actually mean? It means focus. All those shiny new projects—ads, shopping bots, a health agent—are on ice. That’s a significant strategic pullback. OpenAI was spreading itself thin trying to build an entire ecosystem, and now it’s scrambling to defend its core product. The daily calls and team transfers scream “all hands on deck.” They’re betting that users care more about a faster, more reliable, and more accurate ChatGPT than about a bunch of auxiliary features. I think they’re probably right, but it’s a defensive move. You pause your offense when you’re worried about losing the game.
Who really benefits?
This is great news for everyone else. For users, a more focused OpenAI and a hungry Google means rapid innovation and better products. For Anthropic and other rivals, it creates more breathing room. But look, the biggest beneficiary might be Google itself. They’ve proven they can be a worthy competitor, which legitimizes the entire race. It’s no longer a one-horse show. This pressure might even force OpenAI to finally fix some of ChatGPT’s long-standing quirks and inconsistencies. The question is, can they move fast enough? Or has Google’s momentum become unstoppable?
