In a dramatic escalation of the artificial intelligence arms race, OpenAI CEO Sam Altman reportedly issued an internal 'code red' memo this week. This high-priority alert was triggered by intensifying competition from rivals like Google and Anthropic, forcing the company to accelerate its strategic response.
GPT-5.2: The Accelerated Counter-Punch
According to a new report by The Verge, OpenAI's direct answer to Google's highly-ranked Gemini 3 model will be GPT-5.2. Initially slated for a later debut in December, the pressure from Gemini's impressive benchmark performance has reportedly forced OpenAI's hand. The new model is now expected to drop on 9 December.
The report, however, adds a note of caution. The release date for GPT-5.2 could still shift slightly due to potential development challenges, server capacity issues, or unexpected announcements from rival AI companies. This move follows an earlier report from The Information which stated that OpenAI's next reasoning model was evaluated internally as being "ahead of Gemini 3".
This rapid schedule adjustment highlights the fierce competition. OpenAI had only just launched its GPT-5.1 model last month, but the spotlight was swiftly stolen by the launch of Gemini 3 just a week later.
Image Generation: A Stumbling Block for OpenAI
While the battle rages on core models, OpenAI faces specific challenges in the image generation arena. Since the release of its GPT-4o's native image capabilities in March, which sparked the viral Ghibli-style image trend, the company has reportedly struggled to perfect its image generation and editing tools.
In a surprising turn, Google has managed to flip the script in this domain. Once not considered a close contender, Google first changed the game with its Nano Banana model and more recently with Nano Banana Pro. These new Google models now top several benchmarks, boasting features like direct access to Google Search and superior, consistent text rendering within images that outpace many competitors.
Inside OpenAI's 'Code Red' Priorities
Following the implementation of the 'code red' status, OpenAI has reportedly pivoted resources to urgently improve the day-to-day user experience of its flagship product, ChatGPT. The focus areas under this highest-priority alert include:
- Enhancing personalisation features for users.
- Increasing the speed and reliability of the chatbot.
- Expanding its knowledge base to allow it to answer a wider range of questions.
In the internal memo, Altman also indicated that the company would be pushing back on some other initiatives to concentrate on the core ChatGPT experience. Projects reportedly being deprioritised for now include bringing ads to ChatGPT, developing AI agents for health and shopping, and the personal assistant project known as Pulse.
This is not the first time OpenAI has used its internal colour-coded system to mark urgency. The San Francisco-based startup had previously declared a 'code orange' to drive improvements for ChatGPT. The company's system uses three colours to mark problem severity: red (highest priority), followed by orange and yellow.
Meanwhile, OpenAI's Head of ChatGPT, Nick Turley, has publicly confirmed that ads are not yet coming to the chatbot, aligning with the strategic shift away from monetisation experiments during this critical period. The AI world now watches closely for the December 9 launch, which could redefine the current competitive landscape.
