OpenAI’s CEO, Sam Altman, has issued a “code red” alert throughout the company as ChatGPT faces intense competition from major tech companies like Google, according to US media reports.
In a memo sent to staff on Monday, Altman emphasized the urgency for ChatGPT, urging employees to focus resources on combating this new competition, as stated in the reports.
Altman announced that other initiatives, including plans to introduce advertising to the chatbot, would be postponed.
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The memo, covered by The Information and Wall Street Journal, revealed that “code red” implies delays in other products like AI agents, which aim to automate shopping and health-related tasks.
Valued at half a trillion dollars, OpenAI stands as the most valuable private company globally.
While major investors are keen to acquire shares, there are growing concerns about how the company will generate revenue to cover the substantial costs of providing AI to its vast user base, most of whom access the service for free.
Last month, Google introduced its new Gemini AI model, marking a significant shift since it was initially caught off guard by ChatGPT’s launch three years ago and criticized for early missteps in its pursuit of OpenAI.
OpenAI has yet to respond to requests for comment.
