In a significant internal move, OpenAI CEO Sam Altman has declared a 'code red' emergency within the company, directing all efforts towards substantially improving the quality of its flagship product, ChatGPT. This directive was communicated through an internal memo, details of which were reported by publications including The Information and The Wall Street Journal.
Inside OpenAI's Priority Alert System
The 'code red' status represents the highest level of priority within OpenAI's internal alert system. The company is said to use a three-colour code to mark the severity of problems, with red being the most critical, followed by orange. Reports indicate that OpenAI had previously declared a 'code orange' to address issues with ChatGPT, signalling that the current situation is considered more urgent.
The memo outlines a sharp refocus on the core user experience. The San Francisco-based AI giant is now channelling resources to enhance ChatGPT's day-to-day performance. Key areas of improvement include:
- Boosting personalization features for individual users.
- Increasing the speed and reliability of responses.
- Expanding the chatbot's ability to answer a wider and more complex range of questions.
Strategic Shifts and Delayed Initiatives
As part of this intensified focus, Altman announced that several other company initiatives are being pushed back. Notably, plans to introduce advertisements on ChatGPT have been delayed. Other projects put on hold include the development of AI agents tailored for health and shopping applications, and the personal assistant project known as 'Pulse'.
Pulse, unveiled a couple of months ago, was designed as a research assistant to provide users with a daily digest of major updates based on their interests and past interactions with ChatGPT. Altman had previously expressed strong personal enthusiasm for Pulse, calling it one of his favourite features.
To execute the 'code red' mission, Altman has encouraged temporary team transfers to prioritise ChatGPT improvements. He has also instituted a daily call with the teams responsible for enhancing the chatbot, ensuring constant progress tracking.
Market Pressure and Competitive Landscape
This internal urgency comes at a time when OpenAI, while still dominant, is facing increasing competitive pressure. According to data from SimilarWeb, OpenAI continues to hold over 70% market share in the generative AI sector. However, its lead has been eroding in recent months.
Google's Gemini has emerged as a formidable challenger, now crossing the 15% market share mark for the first time. Gemini gained significant viral attention months ago with its 'Nano Banana' model, which allowed for impressive image editing with great character consistency. Since then, its Gemini 3 Pro model is widely believed to be highly competitive, while the Nano Banana Pro model has topped benchmarks for image creation and editing.
Echoing the company's renewed focus, Nick Turley, Head of ChatGPT, stated on X (formerly Twitter) that the team is dedicated to making the AI feel more intuitive and personal. He thanked users for an incredible three years and emphasized that the work is far from over, with goals to expand access globally while refining the user experience.
OpenAI's 'code red' declaration underscores the critical juncture at which the company finds itself—striving to solidify its technological edge and user loyalty in an increasingly crowded and sophisticated AI market.
