Facing Gemini Surge, OpenAI Scrambles To Overhaul ChatGPT: Report

• In a memo to staff, CEO Sam Altman has emphasized the need to enhance ChatGPT’s day-to-day performance.
• The pivot comes amid rising competitive pressure, especially from Gemini, a fresh AI model from Google.
• OpenAI’s ChatGPT lead, Nick Turley, wrote on the X platform that the team is now concentrating on expanding the chatbot.

OpenAI has reportedly activated a “code red” alert across the company, redirecting teams to focus solely on improving the user experience of its chatbot ChatGPT. 

According to a Wall Street Journal report, the move reflects the growing urgency as competitors intensify the race for AI dominance.

Internal Memo 

In a memo to staff, CEO Sam Altman has emphasized the need to enhance ChatGPT’s day-to-day performance, including better personalization, faster response times, greater reliability, and broader question-answering capabilities, the report stated. 

The pivot comes amid rising competitive pressure, especially from Gemini, a recently upgraded AI model from Alphabet Inc.’s (GOOGL, GOOG) Google that recently outperformed OpenAI on benchmark tests. 

At the time of writing, retail sentiment around OpenAI on Stocktwits was ‘extremely bearish’ with ‘normal’ message volume levels. OpenAI is a private company and is not listed on a stock exchange.

Projects Put On Hold

Optimism around Google Gemini 3’s enhanced reasoning capabilities and interactive tools sent Alphabet shares to record highs in November.

According to the report, as rival platforms gain traction, Altman signaled that ChatGPT must maintain its superior core user experience before the company advances non-core ventures. To free up engineering resources, OpenAI is pausing or slowing development of planned features such as advertising, AI assistants for health or shopping, and a proposed personal assistant called “Pulse.”

On Monday night, OpenAI’s ChatGPT lead, Nick Turley, wrote on the X platform that the team is now concentrating on expanding the chatbot and making it feel even more intuitive and personal.

Though ChatGPT boasts hundreds of millions of weekly users, OpenAI remains unprofitable and must rely on frequent funding rounds. The company’s profit depends upon converting its AI work into sustainable revenue, especially as rivals like Anthropic scale up. 

Also See: Credo’s Record Earnings, Blowout Q3 Guidance Sends Shares Soaring Premarket – CFO Signals Aggressive Growth Plans

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