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OpenAI's Code Red: 5 Things to Know About the AI Giant’s ChatGPT Strategy

OpenAI's Code Red: 5 Things to Know About the AI Giant’s ChatGPT Strategy

OpenAI CEO Sam Altman reportedly declared a “code red” last week, asking employees to focus on ChatGPT.

Written by Akash Dutta, Edited by Rohan Pal | Updated: 8 December 2025 13:36 IST

OpenAI's Code Red: 5 Things to Know About the AI Giant’s ChatGPT Strategy

Photo Credit: Unsplash/Levart_Photographer

Gemini 3 Pro outperformed GPT-5.1 on almost all benchmark tests

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Highlights

Altman reportedly wants less focus on ads and non-ChatGPT projects
Code Red was said to be declared after Gemini 3 Pro release
OpenAI could release GPT-5.2 next week

OpenAI CEO Sam Altman reportedly declared a “code red” to the employees last week, urging them to pause work on any projects that do not focus on improving ChatGPT. As per the report, the San Francisco-based artificial intelligence (AI) giant is facing the pressure after the release of Gemini 3 Pro, which outperformed its GPT-5.1 on multiple parameters. It is said that Altman is even opposed to the staff working on revenue generation efforts, such as advertisements, to focus on the company's flagship product. But, what is this code red, and how can it impact OpenAI's short-term future?

Five Things to Know About OpenAI's Code Red

The background: The chain of events started last week, when multiple reports claimed that the OpenAI CEO sent a company-wide memo declaring a “code red.” Code red, in a corporate setting, typically describes a business crisis situation. It is an unofficial term to indicate change of priority and shift of focus to divisions that require an immediate addressal. According to The Wall Street Journal, the AI giant's code red was flagged to highlight that ChatGPT requires immediate attention to stay ahead of the competition.
Reason behind the code red's timing: Based on reports and the timing of the “all-hands-on-deck emergency,” it is likely that Google's Gemini 3 Pro and Gemini 3 Deep Think release triggered it. Just a few weeks before the Mountain View-based tech giant, OpenAI released its first major update to GPT-5, but it did not improve performance metrics significantly. On the other hand, Gemini 3 Pro arrived with major upgrades compared to its predecessor, and OpenAI's currently frontier model.
Why is Altman worried? While no report has highlighted why Altman is suddenly asking employees to pause all non-ChatGPT-related work, the core concern is logical. As summed up in a Business Insider report, Gemini getting ahead of ChatGPT means individuals who prefer OpenAI's AI models might be lured by Google. Since the AI space is still new and developing, brand loyalties do not exist currently. That means users jumping bandwagon to another platform should be expected. However, more than individual users, OpenAI must be worried about losing its enterprise clients, which is a massive revenue source for the company. Since for businesses, the biggest requirement is reliable performance, Google currently has a big advantage in gaining more clients. And the longer it takes the AI giant to develop a comparable or better model, the more it will end up losing.
So, what should users expect after this declaration of code red? According to The Verge, unnamed sources familiar with the plan have revealed that GPT-5.2 could arrive as soon as the next week. As per the report, the update is said to close the gap created by Gemini 3 family of AI models. It should be noted that no previous leaks suggested that this update would arrive so soon, especially since it has not even been a month since GPT-5.1 was rolled out to users.
What about other short-to-mid term consequences? These are more difficult to gauge, since not a lot is known about OpenAI's plans after Altman's memo. However, since the focus is on improving ChatGPT, it is likely that users should see multiple new releases for the chatbot, including arrival of new large language models (LLMs). Additionally, with all other work being put on pause, a delay is expected before the Sora app or ChatGPT Atlas see any new upgrades. Additionally, with advertising being halted as well, users should be less concerned about seeing advertisements on ChatGPT in the near future. The integration of ads might also be delayed since they can act as a deterrent in pushing users away.

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Further reading: OpenAI, ChatGPT, Sam Altman, AI, Artificial Intelligence

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More