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OpenAI is under pressure as Google, Anthropic gain ground

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Sam Altman is feeling the pressure.

The OpenAI CEO sent a memo to his staffers on Monday outlining a "code red" effort to improve its chatbot ChatGPT, according to multiple reports. Altman said OpenAI will be pulling back on investments in areas like health, shopping and advertising as it works to prioritize ChatGPT, the reports said.

OpenAI declined to comment on Tuesday.

"Our focus now is to keep making ChatGPT more capable, continue growing, and expand access around the world — while making it feel even more intuitive and personal," Nick Turley, head of ChatGPT at OpenAI, wrote in a post on X on Monday.

The Information was first to report on the memo.

More than 800 million people use ChatGPT each week, but the company is facing increasingly stiff competition from rivals like Google and Anthropic.

Google announced its latest artificial intelligence model, Gemini 3, last month, which topped industry benchmarks and was widely lauded by users, researchers and developers across social media.

The company said its Gemini app has 650 million monthly active users while AI Overviews, which appear at the top of search results, have 2 billion monthly users.

Altman congratulated Google on the launch, writing in a post on X last month that Gemini 3 "looks like a great model."