OpenAI Has a Very Big Problem

"In the last few weeks, the most talked-about startup in the world has been emitting some alarming signals. OpenAI should expect some "rough vibes" in the coming months, CEO Sam Altman said in an internal memo. More recently, in another memo, he told employees that he was declaring a "code red" effort within the company to improve its most popular product, ChatGPT, and focus work on underlying models."

"Not even six months ago, Altman was blogging about the "gentle singularity," claiming that we are "past the event horizon," that "the takeoff has started," and that humanity "is close to building digital superintelligence." What has happened since then? We'll start with the big one: Google. Altman's "vibes" memo was a direct response to the release of Google's Gemini 3 model, which bested OpenAI's newest models in a range of important benchmarks."

"With the additional news that Google's in-house chipbuilding efforts seem to be going well, a late-2025 snapshot of the AI race probably doesn't have OpenAI in the lead. Since the release of ChatGPT, two facts provided OpenAI with momentum and mystique: Its core product actually had a bunch of users, unlike any of its competitors, and its models seemed to be a generation in front of everyone else's."

OpenAI has signaled internal concern, with CEO Sam Altman warning of "rough vibes" and declaring a "code red" to improve ChatGPT and underlying models. Competitors have advanced: Google released Gemini 3, which outperformed OpenAI models on key benchmarks, and launched a more capable image generator that helped drive claimed monthly user growth above 650 million. Google's chipbuilding progress strengthens its position, reducing OpenAI's relative advantage. OpenAI's earlier edges—widespread user adoption and a perceived generation-leading model—have eroded as rivals gain capability and integrate models into broader products, prompting consideration of incremental updates to remain competitive.

Read at Intelligencer