Sam Altman Sounds the Alarm at OpenAI as Rival Chatbots Gain Traction

Sam Altman, the CEO of ChatGPT maker OpenAI, has told employees at the company that ChatGPT is at a critical time and needs to be urgently improved in order to fend off the growing competition from rival AI chatbots.

According to media reports, this “code red” was conveyed through an internal memo circulated to staff. The instant impact that Gemini 3, a chatbot made by Google, has had, has rattled OpenAI and the ChatGPT maker has decided to allocate a lot more resources towards efforts to improve ChatGPT in the wake of the growing competition within firms with AI-powered chatbot models.

While speaking to employees last month in the wake of Gemini 3’s launch, Sam Altman remarked that OpenAI could be in for “economic headwinds” after Gemini 3 performed better than its rivals on a variety of benchmarks. Altman warned there would be rough vibes for ChatGPT for a while in response to the impact of Gemini 3.

ChatGPT currently has weekly users numbering approximately 800 million. This puts OpenAI in a strong position within the AI model space. However, Google has a very profitable online search business and has at its disposal immense amounts of data that can be leveraged to give Gemini an edge. Additionally, the earnings from the online search business give Google the finances it needs to drive its AI ambitions.

Sam Altman is right to be concerned about the prospects of ChatGPT in the wake of emerging rivals. For example, Salesforce’s CEO Marc Benioff revealed on X that he used Gemini 3 for only 2 hours and will henceforth use this chatbot only despite having used ChatGPT daily for the entire 3 years it has been in existence. He explained that the experience of using Gemini 3 was “insane” in terms of its superior speed, reasoning, video and images. Benioff says everything about Gemini 3 is faster and sharper.

That endorsement from such a prominent figure in the tech world isn’t being taken lightly by the team behind ChatGPT. The company is vowing to continue making the AI model more personal, intuitive, and capable. It remains to be seen how quickly the firm will improve its model and what the response to those improvements will be once they are unveiled.

For now, Gemini 3 seems to have upped the ante in the race for AI model dominance in the U.S. and around the world. OpenAI now has to respond to the volley fired by Google. Other players like Amazon.com Inc. (NASDAQ: AMZN) in the AI industry also have their own rivals to contend with in the verticals where they operate, and this competition is going to be fascinating for analysts to watch.

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