OpenAI has declared a "code red" and is putting almost all of its resources into improving ChatGPT in a bid to keep pace with rivals, especially Google, reports the Wall Street Journal. CEO Sam Altman announced the move on Monday in a company memo, saying that other initiatives—including projects in advertising, health, and shopping, as well as a personal assistant called Pulse—would be put off for now. "We are at a critical time for ChatGPT," Altman wrote in the memo, per Ars Technica.
A company exec explained that the goal is to make the chatbot "even more intuitive and personal," per the Journal. The memo is a clear sign of escalating competition in the AI industry, especially from Google, which recently rolled out a new version of its Gemini AI model that bested OpenAI on industry benchmarks and helped boost Google's stock. Gemini's user base has also surged, and OpenAI is feeling pressure from business-focused rival Anthropic as well.
OpenAI's financial situation adds another layer of urgency. The company isn't yet profitable and needs to raise funds regularly just to stay afloat—unlike established tech giants such as Google, which can rely on revenue to finance their projects. OpenAI's own projections show it will need to reach roughly $200 billion in annual revenue by 2030 to turn a profit. The company does pull in some revenue from ChatGPT subscriptions, but most users opt for the gratis version of the chatbot, reports the AP.
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