OpenAI CEO Sam Altman warned of rough times ahead in a recent memo. The company faces fierce competition from emergent AI rivals, prompting a “code red” response. Google’s Gemini 3 chatbot has surpassed OpenAI’s ChatGPT, causing economic concerns for Altman. Salesforce CEO Marc Benioff praised Gemini’s capabilities over ChatGPT.

Altman plans to release a new reasoning model to compete with Gemini. Despite ChatGPT’s large user base, Google’s chatbot has seen a significant increase in users. Altman will focus on improving ChatGPT amid financial challenges, with OpenAI predicting substantial operating losses and no profit until 2030.

OpenAI needs continued growth to offset its expected cash burn. Analysts project a $207 billion shortfall by 2030, even with revenue reaching $200 billion. Google’s AI advancements, particularly with Gemini, have impacted investors, with Nvidia’s stock down and Broadcom’s up since Gemini 3’s release.

Google’s AI success, including Gemini 3, has disrupted the market. The search giant’s use of Tensor Processing Units for Gemini rather than Nvidia’s GPUs has caused concern among investors. Nvidia’s stock has dropped, while Broadcom, involved in developing Google’s chips, has seen a significant increase.

Read more at Yahoo Finance: Behind Sam Altman’s ‘Code Red’ Response to OpenAI Competitors’ Gains