"OpenAI is deprioritizing work on advertising as it focuses on improving the quality of ChatGPT, reports The Information. OpenAI CEO Sam Altman declared a "code red" on Monday, and told employees that the company needs to improve ChatGPT so it doesn't fall behind competitors like Google and Anthropic. Altman said that OpenAI needs to work on personalization for each user, image generation, and model behavior like speed and reliability."
"OpenAI's plan to start showing customers ads leaked earlier this week, but Altman told employees that ads are now on the backburner. Work on advertising, shopping AI agents, and a more proactive and personalized version ChatGPT assistant called Pulse has been delayed. OpenAI has been testing several kinds of ads, including ads that would be shown during online shopping requests, but introducing ads could push users to other chatbots."
OpenAI has deprioritized advertising and related products to concentrate resources on improving ChatGPT after CEO Sam Altman declared a "code red" over competitive threats. Priorities include user-level personalization, enhanced image generation, and improvements to model behavior such as speed and reliability. Competitors like Google’s Gemini 3 Pro and its Nano Banana image generator, plus Anthropic’s Claude, have attracted users and outperformed ChatGPT on benchmarks. Work on ads, shopping AI agents, and a proactive personalized assistant called Pulse has been delayed amid concerns that ads could drive users to rival chatbots. A new reasoning model will ship next week and is claimed to outperform Gemini 3 in internal evaluations.
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