OpenAI in open panic over Gemini’s sudden dominance
Profitless and funded by an ongoing circle jerk of VCs and strategic deals, OpenAI is in a panic as Google’s Gemini has apparently ceased sucking and taken the lead in the LLM wars. If the funding dries up, ChattyG will fade away.
The shoe is most certainly on the other foot. On Monday, OpenAI CEO Sam Altman reportedly declared a “code red” at the company to improve ChatGPT, delaying advertising plans and other products in the process, The Information reported based on a leaked internal memo. The move follows Google’s release of its Gemini 3 model last month, which has outperformed ChatGPT on some industry benchmark tests and sparked high-profile praise on social media.
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The directive creates an odd symmetry with events from December 2022, when Google management declared its own “code red” internal emergency after ChatGPT launched and rapidly gained in popularity. At the time, Google CEO Sundar Pichai reassigned teams across the company to develop AI prototypes and products to compete with OpenAI’s chatbot. Now, three years later, the AI industry is in a very different place.
Silicon Valley’s version of a fire drill, except the building is made of NVidia GPUs and hubris. While Google celebrates a rare win, OpenAI is shelving its ad platform, pausing health and shopping agents, and trying to stop a narrative shift that’s collapsing faster than Friendster. The empire’s Gemini didn’t just strike back; it kicked down the door and took OpenAI’s crown.