AI Competition Heats Up: OpenAI Focuses on Enhancing ChatGPT Rather Than Broadening Its Reach

OpenAI Launches Urgent Effort to Boost ChatGPT Amid Intensifying AI Competition

Sam Altman, CEO of OpenAI, has initiated an urgent campaign to significantly upgrade ChatGPT, marking a strategic shift as competitors such as Google and Anthropic close the gap in the artificial intelligence sector. This "code red" initiative, revealed in an internal memo, places top priority on enhancing ChatGPT’s customization, speed, and dependability, while temporarily pausing other projects like AI-driven health, shopping tools, and advertising features. Altman stressed the immediate need to improve user experience, particularly by expanding the chatbot’s ability to address a wider variety of questions.

The urgency comes as Google's Gemini 3 model has outperformed OpenAI’s GPT-5 in recent benchmark assessments, earning widespread praise and driving up Google’s stock value. Gemini’s monthly active user base soared to 650 million by October, up from 450 million in July, while ChatGPT continues to attract over 800 million weekly users. Meanwhile, Anthropic is on track to reach profitability by 2028, ahead of OpenAI’s projected 2030 timeline, highlighting the growing financial stakes in the AI industry. Additionally, China’s DeepSeek has introduced models that rival those of OpenAI and Google in certain tests, further intensifying the global race.

To accelerate improvements, OpenAI has instituted daily meetings for teams dedicated to ChatGPT and has temporarily reassigned staff to focus on these upgrades. Nick Turley, who leads the ChatGPT team, emphasized that the chatbot remains the leading AI assistant worldwide, accounting for 70% of assistant usage and 10% of search activity. However, recent analytics suggest that users are now spending more time with Google’s Gemini than with ChatGPT, indicating a shift in user preferences.

Securing advanced hardware is also crucial for OpenAI’s progress. The company relies on partnerships with major chip manufacturers such as Nvidia, Broadcom, and AMD to ensure access to the necessary technology for AI development. At the same time, Google’s custom Tensor Processing Units (TPUs) are facing stiff competition from Nvidia’s more versatile GPUs. Nvidia has recently strengthened its position in the AI hardware market through collaborations with Synopsys and Hewlett Packard Enterprise.

The broader economic landscape reflects the growing influence of AI, with Black Friday online sales reaching a record $11.8 billion—a 9.1% increase from the previous year—driven in part by AI-powered shopping assistants. These AI agents contributed to $22 billion in global sales, while physical store visits declined by 3.6%, signaling a shift toward digital-first shopping habits.

OpenAI’s renewed focus on enhancing ChatGPT’s core features supports its long-term goal of reaching 220 million paying users by 2030. However, with competitors advancing rapidly and operational costs rising, OpenAI faces mounting pressure to retain its leadership position. Altman’s "code red" directive reflects an acknowledgment that the AI field is evolving rapidly, with rivals like Google and Anthropic reshaping the competitive landscape.