CNBC’s Deirdre Bosa joins 'Money Movers' to report on the memo Sam Altman sent OpenAI staffers declaring a 'code red' effort to improve ChatGPT.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

OpenAI CEO Sam Altman has reportedly issued a 'code red' directive to employees, urging them to concentrate resources on improving ChatGPT in response to heightened competition in the artificial intelligence sector. This move follows recent advancements by rivals such as Google's Gemini and DeepSea, which have challenged OpenAI's dominance in AI benchmarks and reasoning tests.

To address these challenges, OpenAI plans to delay the launch of new products, including advertising and specialized AI agents, in order to strengthen its core chatbot offering. The company faces significant pressure as the gap between leading AI models narrows and the cost of maintaining a competitive edge increases, making ChatGPT both its primary asset and vulnerability.

OpenAI reportedly issues 'code red' amid increased AI competition

Meantime, the pace of these new AI developments might be starting to make some people nervous, like OpenAI. Sam Altman reportedly issuing this code red to employees to refocus resources into the core product, of course, Chad GPT. Our dear Debosa has more on today's tech check and what is probably the main story right now in tech. Morning, Dee. Morning, Carl. Feels like it's always there. But this memo cited by the Journal in the Information, it's proof that the AI moat is breached. Altman is essentially signaling that OpenAI can't scale a profitable business until they re-secure its foundational lead by fixing the core product experience. But that's also part of the problem. Competitive leads and models are now fleeting. They're measured in months, sometimes just weeks. The minute that Google's Gemini top GPT on benchmarks, OpenAI's dominance was gone. This past week, DeepSea, remember them, unveiled two new versions of an experimental model that it says matches GPT-5 on multiple reasoning tests. Next week, OpenAI will answer with its own new reasoning model that Altman says is ahead of Gemini. The result is this, a leaderboard that is constantly shifting. The difference between first place and third place is just a few percentage points. The cost of chasing that tiny lead is huge, but the utility for the average user is almost indistinguishable. And the trade-off for OpenAI is increasingly brutal. Altman is talking about sacrificing future high margin revenue. The memo says that they will delay products like advertising and specialized AI agents to refocus on the chatbot itself. And that exposes OpenAI's core vulnerability. Chat is both its crown jewel and its single point of failure. Everything rides on defending its position in the chatbot wars, a position that Google just disrupted.

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Caracas

Maduro accuses U.S. of pushing for regime change to get Venezuela’s oil

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Canberra

Australia under-16s social media accounts to be taken down

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Brussels

EU agrees deal to ban Russian gas by end of 2027

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Washington

Trump pardons Democratic Rep. Henry Cuellar and his wife

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Watchdog found Hegseth jeopardized sensitive military information

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Never-before-seen images of Jeffrey Epstein's island released

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Los Angeles

Doctor who sold Matthew Perry ketamine sentenced to 30 months in prison

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YouTube attacks Australia's underage social media ban

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Moscow

Ukraine Invasion

U.S. envoys Kushner, Witkoff leave Kremlin without Ukraine deal

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Tennessee

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California

OpenAI declares 'code red' as Google threatens its AI lead

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Pokrovsk

Russia claims control of Pokrovsk

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Nuwara Eliya

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Tegucigalpa

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Blagnac

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Damascus

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New Orleans

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New York

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OpenAI reportedly issues 'code red' amid increased AI competition

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Rise of AI