Altman declares internal emergency as Gemini 3 outperforms ChatGPT in key tests

OpenAI declared an internal “code red” on Monday, according to a leaked memo. The Information, following Google's competitive advance and Gemini 3's superior performance in key AI tests. The measure, announced to employees by Sam Altman, seeks to redirect resources towards the immediate improvement of ChatGPT and postpone secondary projects such as advertising. The announcement comes at a time when Google's market share is growing rapidly and Gemini usage has surpassed ChatGPT's for the first time.

Gemini 3 breaks records and forces OpenAI to respond urgently

Sam Altman informed OpenAI employees that the company is entering a phase of “code red”A statement reserved for moments of strategic risk. The reason: the results of Google Gemini 3 model, which since its launch in mid-November has displaced ChatGPT from the top spot in multiple global benchmarks.

Gemini 3 achieved a score 1.501 record in the LMArena ranking, becoming the first model to break the 1.500-point barrier. But the most worrying sign came from the advanced reasoning benchmark. ARC-AGI-2Where Gemini 3 Deep Think achieved 45,1% compared to 17,6% obtained by GPT-5.1, a margin considered humiliating in the industry. "The difference is not incremental, it is structural," analysts quoted by Reuters say.

The change in strategy announced by Altman implies temporarily set aside secondary projects, including commercial initiatives and the exploration of advertising models, to dedicate engineering resources to ChatGPT improvements. Altman reportedly indicated that the absolute priority is "to recover lost technical ground" before Gemini 3 establishes sustained leadership.

Google's advance coincides with a shift in user behavior. Recent data from Similarweb shows that Users now spend more time on Gemini than on ChatGPTThis is a sign that the perception of quality is beginning to shift. A key element: the deep integration between Gemini and the Google ecosystem, which allows for immediate use in Docs, Gmail, Chrome, Android, Pixel, and Workspace.

Altman's memo tacitly acknowledges this risk. According to The InformationThe CEO stated that the company is at a point where “Each improvement must be implemented faster than ever before.”, a message reminiscent of the most critical phases of previous technological cycles.

Financial pressure and an unexpected pause in advertising plans

The strategic shift comes at a delicate time for OpenAI's finances. During the first half of 2025, the company earned $4.300 billionbut reported net losses of 13.500 billion, mainly attributable to the massive costs of computing, model deployment and infrastructure growth.

This is in addition to the financial commitments already signed: over $1,4 trillion in eight-year acquisition commitments to ensure computing capacity, while infrastructure partners—whose names are not listed in the memo but include Microsoft—have assumed around $96.000 billion in debt associated with the support of OpenAI models.

Despite these numbers, the company continues to lead the market: ChatGPT maintains approximately 800 million weekly active users, which is close to 75% of the generative AI chatbot marketBut even this advantage could be insufficient if the company fails to keep pace with its competitors.

In parallel, OpenAI was quietly exploring a integrated advertising model in ChatGPTAccording to lines of code found in the latest beta version of the Android app, these included references to "ads feature", "search ad" y "search ads carousel"signs that the company was considering introducing contextual ads, especially in searches related to shopping.

The company had also recently launched a shopping research tool ChatGPT is partnering with Walmart and Target to enable direct purchases within the chatbot. These initiatives—a new revenue stream amidst increasing financial pressure—are now facing challenges. formally postponedAltman reportedly confirmed that the focus should return to the main product: “ChatGPT has to be unbeatable”.

The decision surprised the advertising industry, which had expected OpenAI to enter the advertising market to compete directly with Google and Amazon. However, the internal memo makes it clear that The immediate priority is technical, not commercial.and that any new monetization model is suspended "until further notice".

The “code red” declared by Sam Altman marks a defining moment for OpenAI: a company that for years led the pace of innovation now faces competitive pressure that it can no longer ignore. The arrival of Gemini 3 ushers in a much more intense phase of technological rivalry.where every advance in reasoning, contextual depth, or multimodal capability redefines the balance of power.