With competitors closing in, OpenAI CEO issues "red alert" and launches a surprise attack on ChatGPT.

OpenAI CEO Sam Altman is reallocating internal resources to accelerate improvements to ChatGPT, and has issued a “red alert” that will delay work on other projects, according to sources familiar with the matter.

One source said Altman sent an internal memo on Monday calling for a “blitz” of ChatGPT improvements; the sources requested anonymity because the matter is not public. Information previously cited the memo, reporting that Altman also asked employees to postpone other projects, such as autonomous AI agents and advertising. While Altman did not specify which fixes needed to be prioritized or the reasons, Information reported that he recently warned employees that Google’s resurgence in AI could have a temporary negative economic impact on OpenAI.

This report highlights the intense competition among AI giants; the entire industry is currently struggling to convince Wall Street that their massive investments in the technology will eventually pay off. Alphabet Inc.’s Google released its AI model Gemini 3 last month, which almost immediately gained widespread acclaim for its reasoning, programming, and ability to perform specific tasks that other AI chatbots struggle with. Meanwhile, OpenAI launched its first AI-powered web browser in October, directly challenging Google.

OpenAI declined to comment on the Altman memo. Nick Turley, head of the company's ChatGPT division, posted on the X platform Monday evening, reiterating the focus on the chatbot, stating that the company's current focus is on "continuously improving ChatGPT's capabilities, continuing to grow, and expanding its global reach—while making the experience more intuitive and personalized."

According to a source familiar with the matter, some OpenAI employees have been asked to shift their focus from areas such as advertising, AI agents, and shopping to more direct involvement in ChatGPT development, including joining cross-team calls with the team behind the chatbot.

It has also been reported that Altman has encouraged temporary team reassignments to prioritize ChatGPT improvements and plans to hold daily calls with the team responsible for this work.

The Information reports that Altman stated in an internal Slack memo that he wants employees to improve ChatGPT's performance to provide a more personalized user experience. Altman also stated that he wants to focus on improving AI model behavior and image generation capabilities. The Information also reported on Tuesday that OpenAI has been developing a new AI model codenamed "Garlic," which excels in tasks involving coding and reasoning.

OpenAI's competitor, Anthropic PBC, also launched its latest version of its AI model last month to improve performance in automated programming and performing office tasks, intensifying its competition with OpenAI and Google for enterprise clients.