OpenAI CEO Sam Altman has declared a “code red” inside the company, according to an internal memo reported by The Information and The Wall Street Journal.
The move signals the highest level of urgency in OpenAI’s internal system of colour-coded alerts—where red marks the most critical priority, followed by orange and yellow. The company had previously operated under a “code orange” to improve ChatGPT, but the escalation underscores mounting pressure from rivals like Google and Anthropic.
The memo calls for a company-wide surge to make ChatGPT faster, more reliable, and more personal, while expanding its ability to answer a broader range of questions.
Clearly, the battle for AI dominance is heating up.
“Our focus now is to keep making ChatGPT more capable, continue growing, and expand access around the world while making it feel even more intuitive and personal. Thanks for an incredible three years. Lots more to do!” Nick Turley, head of ChatGPT reinforced the urgency in a post on X. OpenAI appears to be doubling down on user experience and personalisation, even as it races to maintain technical leadership.
To free up resources, OpenAI is shelving several initiatives that were only recently announced, including plans to introduce advertising on ChatGPT, the development of AI agents for health and shopping, and Pulse—a personal research assistant designed to deliver daily digests tailored to user interests and past interactions. Pulse, which Altman had previously described as one of his favourite features, was unveiled just a couple of months ago as part of OpenAI’s push to make ChatGPT more useful for shopping and research.
Also Read: Inside OpenAI’s first AI device
OpenAI’s “code red” moment is not just about product tweaks—it’s about survival in a market where speed, reasoning, and distribution determine winners. With monetisation experiments paused and infrastructure costs soaring, the stakes couldn’t be higher.
This urgency comes amid growing chatter about an AI investment bubble, fuelled by OpenAI’s $500 billion valuation and trillion-dollar infrastructure commitments. Arun Chandrasekaran, Distinguished VP Analyst at Gartner, says, “Any pop in an AI bubble or market correction does not invalidate the value of AI progress. However, a downturn in AI investment or a significant market correction can breed scepticism and distrust among boards, CEOs, and business leaders who might associate a market correction with the failure of the technology.”
He warns that such perceptions could lead to funding cuts, stalled projects, and morale issues, even though the underlying technology remains sound. In short, while a correction may dampen short-term optimism, AI’s value—both for consumers and businesses—remains undeniable.
First Published: Dec 03, 2025, 15:45
Subscribe Now