**Code Red at OpenAI: Enhancements for ChatGPT Arriving Soon After Gemini 3 Alarm**
OpenAI is at a pivotal juncture as it reacts to escalating rivalry from Google’s recently launched Gemini 3, which has eclipsed OpenAI’s AI models in crucial benchmarks. This situation has led OpenAI CEO Sam Altman to circulate a “code red” memo, indicating an immediate need for enhancements to ChatGPT. The action is taken as OpenAI strives to safeguard its revenue streams, boasting over 800 million monthly users, the majority of whom utilize the free tier. In contrast, Gemini’s user base has rapidly expanded, climbing from 450 million in July to 650 million in October.
The debut of Google’s Nano Banana image generator in August has further heightened the competitive environment. Google subsequently introduced the Gemini 3 Pro alongside an upgraded Nano Banana Pro image generator. Moreover, the launch of Claude Opus 4.5 by Anthropic has increased the pressure on OpenAI. With these changes, OpenAI faces the risk of losing users, including paying subscribers, to its competitors. The company, which has yet to turn a profit, must continue securing funding to sustain operations and enhance its data centers. To reach profitability, OpenAI aims to elevate its revenue to $200 billion by 2030.
**Upcoming ChatGPT Reasoning Model Set to Exceed Gemini 3**
In light of the competitive danger, OpenAI is poised to unveil a new ChatGPT reasoning model that is anticipated to surpass Gemini 3. Altman’s memo specifies several upgrades, including improved personalization options, increased speed, and greater reliability. The new model will also possess the capability to address a wider array of inquiries. These upgrades align with OpenAI’s strategy to enhance ChatGPT’s functionality and extend its global presence.
The critical nature of the situation is highlighted by OpenAI’s implementation of color codes to denote issue severity, with “code red” signifying the utmost level of urgency. This follows a prior “code orange” for advancing ChatGPT. Interestingly, Google proclaimed its own code red three years ago following ChatGPT’s remarkable success, resulting in continuous enhancements to its AI offerings.
Despite the priority on refining ChatGPT, certain initiatives, such as ChatGPT ads, AI agents for shopping and healthcare, and upgrades to ChatGPT Pulse, will experience delays. OpenAI’s ChatGPT lead, Nick Turley, underscored the company’s dedication to enhancing ChatGPT’s features and broadening access globally while making the platform more user-friendly and personalized.
