OpenAI CEO Sam Altman told employees on Dec. 1 that the company is declaring a “code red” to improve ChatGPT, a move that will divert resources away from several other projects, The Wall Street Journal reported Dec. 2.
In a companywide memo viewed by the Journal, Mr. Altman said OpenAI will shift staff and attention toward improving the day-to-day experience of its chatbot. The focus includes enhancing personalization tools, boosting speed and reliability, and expanding the range of questions ChatGPT can answer. The effort marks one of the most urgent internal pushes the company has initiated.
Because of the renewed focus on ChatGPT, OpenAI will delay work on several other initiatives, according to the memo. Those projects include advertising, AI agents for health and shopping, and a personal assistant product called Pulse.
The “code red” comes as OpenAI faces heightened pressure from rivals. Google’s latest Gemini model recently outperformed OpenAI on several industry benchmarks, and its user base has climbed sharply, the Journal reported. OpenAI is also contending with increased competition from Anthropic, which has gained traction among business customers.
At the same time, OpenAI is navigating concerns about its long-term financial path. The Journal reported that the company has committed to massive data-center investments and continues to raise capital regularly, putting it at a disadvantage compared with tech giants that can fund AI development through their own revenues.
Despite those challenges, Mr. Altman told employees the company remains strong on several fronts and plans to release a new reasoning model next week.
