AI Race Intensifies: OpenAI Prioritizes ChatGPT Upgrades Over Expansion

OpenAI CEO Sam Altman has declared a "code red" initiative to enhance ChatGPT's performance, signaling a strategic pivot as rivals like Google and Anthropic narrow the startup's lead in the artificial intelligence race. The move, [detailed in an internal memo reported by The Wall Street Journal](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt), prioritizes improvements to ChatGPT's personalization, speed, and reliability while delaying other projects such as AI agents for health and shopping and advertising integrations. Altman emphasized the urgency of addressing user experience gaps, including the chatbot's ability to handle a broader range of queries [according to internal reports](https://www.wsj.com/tech/ai/openais-altman-declares-code-red-to-improve-chatgpt-as-google-threatens-ai-lead-7faf5ea6).

The pressure on OpenAI comes as Google's Gemini 3 model surpassed OpenAI's GPT-5 in benchmark tests, drawing widespread acclaim and boosting Google's stock. [Gemini's monthly active users surged to 650 million](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt) by October, up from 450 million in July, while ChatGPT retains over 800 million weekly users. [Anthropic is poised to break even by 2028](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt), outpacing OpenAI's 2030 target, underscoring the financial stakes in the AI race. Meanwhile, China's DeepSeek recently launched models that rival OpenAI's and Google's in certain benchmarks [according to industry analysis](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt), further intensifying global competition.

OpenAI's strategic recalibration includes daily calls for teams focused on ChatGPT improvements and temporary staff reallocations [as reported by The Wall Street Journal](https://www.wsj.com/tech/ai/openais-altman-declares-code-red-to-improve-chatgpt-as-google-threatens-ai-lead-7faf5ea6). Nick Turley, head of ChatGPT, highlighted the chatbot's role as the "1 AI assistant worldwide," with 70% of assistant usage and 10% of search activity attributed to it [according to Forbes analysis](https://www.forbes.com/sites/siladityaray/2025/12/02/altman-code-red-memo-urges-chatgpt-improvements-amid-growing-threat-from-google-reports-say/). However, [data from web analytics firm Similarweb](https://finance.yahoo.com/news/openai-sam-altman-declares-code-102812242.html) indicates users are spending more time with Gemini than ChatGPT, suggesting shifting user preferences.

Financial dynamics also play a critical role. [OpenAI's reliance on partnerships with chipmakers](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt) like Nvidia, Broadcom, and AMD underscores its need to secure hardware for AI advancements. Meanwhile, [Google's Tensor Processing Units (TPUs) face competition](https://fortune.com/2025/11/25/google-sleeping-giant-dark-horse-ai-race-gemini/) from Nvidia's GPUs, which offer greater flexibility for developers. [Nvidia's recent partnership with Synopsys and Hewlett Packard Enterprise](https://www.barrons.com/articles/nvidia-stock-price-ai-chips-google-3d4a12cd) aims to reinforce its position in the AI hardware market.

The broader economic context includes a surge in Black Friday e-commerce, driven in part by AI-powered shopping tools. [Online sales hit $11.8 billion](https://techcrunch.com/2025/11/29/black-friday-sets-online-spending-record-of-11-8b-adobe-says/), a 9.1% increase from 2024, with AI agents influencing $22 billion in global sales. [Despite this, in-store traffic dipped 3.6%](https://www.forbes.com/sites/joanverdon/2025/11/29/black-friday-data-shows-online-sales-strong-store-results-mixed/), reflecting a shift toward digital-first consumer behavior.

OpenAI's focus on ChatGPT's core capabilities aligns with its long-term vision of achieving 220 million paying users by 2030 [according to company projections](https://seekingalpha.com/news/4527458-openai-ceo-code-red-improve-chatgpt). Yet, with rivals advancing rapidly and data-center costs rising, the startup faces a high-stakes race to maintain its market dominance. Altman's "code red" directive signals a recognition that the AI landscape is no longer a "zero-sum game," as competitors like Google and Anthropic redefine the rules [according to financial analysis](https://fortune.com/2025/11/25/google-sleeping-giant-dark-horse-ai-race-gemini/).