Sam Altman Issued a ‘Code Red’ After Anthropic Started Dominating the Business Market. Now OpenAI Is Doubling Its Workforce.

Sam Altman saw the writing on the wall months ago. The OpenAI CEO issued a “code red” late last year after realizing the company was spreading itself too thin — chasing everything from video models to robotics while Anthropic focused on winning business customers. The strategy backfired. Business customers purchasing AI for the first time now choose Anthropic at three times the rate of OpenAI.

Altman’s solution: hire aggressively and refocus. He plans to double OpenAI’s workforce to 8,000 employees by year-end, with new hires working across product development, engineering, research and sales. OpenAI is also ditching “side quests” to concentrate on its core products.

The stakes are high. OpenAI needs to close the enterprise gap while solving another big problem: 90% of ChatGPT’s 900 million users don’t pay.