OpenAI declares ‘code red’ as Google catches up in AI race
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OpenAI Declares 'Code Red,' Delays Projects Amid Google AI Rivalry
Is OpenAI's focus on ChatGPT smart crisis management, or does it expose the company's fragility and deeper problems?
Above: OpenAI CEO Sam Altman during a media tour of the Stargate AI data center in Abilene, on Sept. 23, 2025. Image credit: Kyle Grillot/Bloomberg/Getty Images
The Spin
Pro-establishment narrative
OpenAI is demonstrating smart crisis management when core business metrics deteriorate. Pausing experimental revenue streams like advertising and shopping agents to focus resources on ChatGPT's speed, reliability, and model superiority shows disciplined prioritization.
Establishment-critical narrative
OpenAI's panic over Google's Gemini 3 exposes the company's fragility and reveals how AI hype masks fundamental problems. The code red amounts to admitting ChatGPT is losing ground while the company burns billions, and this desperation play won't fix the deeper crisis.