"In case you haven't been following, OpenAI CEO Sam Altman on Monday declared a "Code Red" alert in a memo to employees, according to the Information and the Wall Street Journal. The alert, the highest level on OpenAI's three-point scale, is essentially an all-hands-on-deck call to mobilize and defend against an imminent threat. That threat is Google and its latest version of the Gemini AI model, which competes with OpenAI's GPT family of models, particularly its flagship ChatGPT product."
"How can a company like OpenAI turn a first-mover advantage into a sustainable and long-lasting business that doesn't get bulldozed by giants with more resources and capital? Is there a lesson-good or bad-from a first mover of the past (e.g. Netscape vs Microsoft; Blackberry vs iPhone) that OpenAI should heed? What is the Google Achilles heel that OpenAI should exploit?"
Sam Altman declared a 'Code Red' alert, the highest level on OpenAI's three-point scale, mobilizing employees to counter an imminent competitive threat. The immediate threat is Google's latest Gemini AI model, which directly competes with OpenAI's GPT models and flagship ChatGPT. The situation arrives nearly three years after ChatGPT's launch, as Google seeks to regain advantage and potentially marginalize OpenAI despite OpenAI's roughly $500 billion valuation. Strategic questions focus on converting first-mover status into a sustainable, defensible business, learning from past first movers, identifying Google's vulnerability, determining OpenAI's top execution priority, and selecting the best success metric.
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