OpenAI Declares “Code Red” as Company Accelerates Launch of Advanced New Model Amid Rising Competition
OpenAI has reportedly activated an internal state of “Code Red,” described by a company insider as the highest level of emergency response, as competitive pressure intensifies following Google’s recent advances with its Gemini 3 model.
According to an internal memo obtained by The Wall Street Journal and tech outlet The Information, OpenAI has begun reallocating substantial resources to enhance ChatGPT’s performance and to fast-track the release of a new, specialized reasoning model expected to debut in the coming days.
Full Focus on Strengthening ChatGPT
The memo states that OpenAI’s executive leadership has directed all teams to prioritize improving ChatGPT, with key efforts centered on advancing customization features, increasing response speed, enhancing answer reliability, and expanding the range of tasks the system can handle more effectively.
The initiative has been elevated to the company’s highest emergency classification, prompting temporary reassignments of staff to the core ChatGPT engineering teams and the scheduling of daily progress reviews.
The memo further indicates that OpenAI aims to launch a new reasoning model designed to significantly improve the system’s inferencing and structured analytical capabilities. While official details remain undisclosed, reports suggest the model may be released “within the next week.”
Project Freezes and Product Delays
As part of the emergency shift in priorities, OpenAI has paused several commercial projects that were under development or early testing. These include planned advertising integrations within the ChatGPT app, specialized AI agents for shopping and healthcare, and updates to ChatGPT Pulse, the company’s intelligent morning briefing service.
The decision aims to channel engineering and computing resources toward optimizing internal model behavior and performance rather than expanding product offerings.
Growing Pressure from Google
The intensified internal mobilization comes amid strong performance signals from Google’s latest AI suite. Gemini 3—including its advanced Deep Think variant—has achieved high scores in independent reasoning benchmarks, according to internal evaluation documents and external reports.
Google has also expanded its generative AI portfolio with new image models, Nano Banana and Nano Banana Pro, strengthening its competitive edge across several AI domains.
Despite the rising pressure, OpenAI maintains a significant lead in user adoption. Internal sources cited in the memo note that ChatGPT continues to dominate global usage, with ChatGPT head Nick Turley reporting a roughly 70% share of the smart chatbot market and more than 800 million weekly users—most of whom rely on the free tier.
A Reversal of the 2022 Landscape
The current scenario mirrors earlier cycles of the AI race. When ChatGPT launched in late 2022, Google declared its own state of emergency to accelerate the development of its in-house AI systems. Now, the roles appear reversed: Google’s momentum is prompting OpenAI to activate similar emergency protocols to preserve its competitive position.
The impact of OpenAI’s actions will depend on how effectively it can translate this internal mobilization into tangible improvements in reasoning capabilities and overall model performance—and how strongly its forthcoming model compares with Google’s latest offerings.
If the internally anticipated breakthrough materializes, OpenAI could regain a decisive edge in the rapidly evolving AI landscape. Yet Google’s rapid iteration and aggressive product development will remain a significant factor shaping the pace and direction of the competition.