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GEOpenAI CEO Sam Altman has reportedly issued a “Code Red” inside the company.
According to an internal memo, teams have been asked to shift focus toward strengthening ChatGPT, especially as Google’s new Gemini models raise competitive pressure.
The memo says OpenAI will pause its upcoming ad initiatives and redirect resources toward major upgrades: faster responses, more stability, deeper personalization, improved behavior, stronger image generation through Imagegen, and better performance on public benchmarks like LM Arena. A new reasoning model is also expected to arrive next week.
To make room for these improvements, several commercial products are being put on hold. This includes the ad platform, early agent tools for tasks like shopping and healthcare, and a project called Pulse that generated personalized reports.
Altman also noted the irony of the moment: Google once declared its own “code red” when ChatGPT disrupted Search and now OpenAI is the one responding to pressure from Google’s latest advances.
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