"The company was so worried about the possibility of the upstart chatbot disrupting its Search business, executives sounded a "code red" alert inside of the company and called Sergey Brin and Larry Page out of retirement to help it formulate a response to OpenAI. It then rushed out Bard, announcing its first commercial chatbot on February 6, 2023. Google's stock tanked days later when the AI incorrectly answered a question about NASA's James Webb Space Telescope during a public demo."
"On January 20, the same day Altman was busy rubbing shoulders with other tech oligarchs at Donald Trump's inauguration, China's DeepSeek quietly released its R1 chain-of-thought model. A week later, the startup's chatbot surpassed ChatGPT as the most-download free app on the US App Store. The overnight success of DeepSeek eliminated $1 trillion worth of stock market value, and almost certainly left OpenAI blindsided."
"In response, the company showed a newfound urgency. In one week, for instance, OpenAI released both o3-mini and Deep Research. It even went so far as to announce the latter on a Sunday evening. But for all its new urgency, OpenAI's biggest, most important release of the year was a miss."
OpenAI surged into prominence after ChatGPT's 2022 debut, prompting Google to sound a "code red," recall founders Sergey Brin and Larry Page, and rush Bard to market, which suffered a high-profile demo error. Major deals with Microsoft and Apple expanded OpenAI's reach. By 2025, competition intensified and market position weakened. On January 20, while Altman attended Donald Trump's inauguration, China's DeepSeek released an R1 chain-of-thought model; its chatbot became the most-downloaded free app on the US App Store a week later and erased roughly $1 trillion in market value. OpenAI responded quickly with o3-mini and Deep Research, but GPT-5 disappointed.
Read at Engadget
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