"His "Code Red" to employees this week marks a reset: Focus on improving ChatGPT, and pause lower-priority initiatives. The most striking pause is advertising. Why delay such a lucrative opportunity at a moment when OpenAI's finances face intense scrutiny? Because in tech, nothing matters more than users. Google built its Search empire on this principle. Every query and click fed a feedback loop: user behavior informed ranking systems, which improved results, which attracted more users."
"Nearly a billion people now interact with it weekly, giving OpenAI an unmatched new window into human intent, curiosity, and decision-making. Each prompt and reply can be fed back into model training, evaluations, and reinforcement learning to strengthen what is arguably the world's most powerful AI feedback loop. Altman's Code Red aims to protect that advantage. If ChatGPT becomes more useful, people will use it more."
OpenAI enacted a Code Red to focus resources on improving ChatGPT and to pause lower-priority projects, notably advertising. The advertising pause aims to preserve user experience and protect a feedback loop that drives model improvements. ChatGPT engages nearly a billion weekly users, producing prompts and replies useful for training, evaluation, and reinforcement learning that compound product usefulness and user growth. Competitors like Google's Gemini 3 present a defection risk if quality or experience deteriorates. OpenAI plans new model releases to reaccelerate growth but faces massive infrastructure costs that will eventually demand more aggressive monetization.
Read at Business Insider
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