Red Alert Activated! OpenAI suspends advertising operations to fully “go head-to-head” with Google Gemini.

Faced with fierce competition from Google, OpenAI CEO Sam Altman can no longer sit still. After acknowledging "temporary economic headwinds," he announced the initiation of a top-level "Code Red" within the company! According to an internal memorandum obtained by The Information today, OpenAI CEO Sam Altman officially announced to all employees on Monday (December 1) that the company is entering "Code Red" status. Altman stated bluntly in the memo: “We are at a critical moment for ChatGPT.” In the face of Google Gemini’s strong counterattack and signs of slowing growth, OpenAI has decided to urgently shift its strategic direction: delaying new commercial projects including advertising and AI Agents, reallocating all core resources, and fully optimizing the user experience and performance of its flagship product, ChatGPT. This move marks a forced strategic shift for OpenAI, from “exploring diversified monetization” back to “core defensive stronghold.” ## Strategic U-turn: Sacrificing short-term monetization to defend 800 million users To address the crisis, Altman issued clear instructions: Everything must make way for ChatGPT. 1. **Delaying ad monetization:** Although OpenAI has been testing shopping ads using the search behaviors of ChatGPT’s millions of users, this highly promising source of revenue has been put on hold. 2. **Slowing new projects:** Projects like “AI Agents” aimed at automating shopping and health tasks, and the personalized morning briefing project “Pulse,” will also have their development progress delayed. During “Code Red,” OpenAI has identified five top-priority core pain points to strengthen its foundation of **800 million weekly active users**. The specific goals include: - **Personalization:** Offering customized interactions for the more than 800 million weekly active users. - **Image generation:** Improving the Imagegen feature to counter competing products such as Google's newly released Nano Banana Pro. This feature supports users in creating all kinds of images, from interior design to animating real-life photos. - **Model behavior:** Optimizing model performance to outshine competing products in public rankings like LMArena. - **Speed and reliability:** Enhancing ChatGPT’s response speed and operational stability. - **Reducing overrefusals:** Minimizing the phenomenon of the model excessively refusing to answer well-intentioned questions. ## A $100 Billion Gamble: The Key Battle for the Next Round of Financing This “Code Red” is not only a product defense battle but also a fight for survival in the capital market. OpenAI anticipates consuming tens of billions of dollars in technology R&D and computing power over the next several years. The company’s current financial forecasts show ChatGPT subscription revenue at about $10 billion this year, planning to rise to $20 billion next year, and $35 billion in 2027. However, to support this ambitious blueprint, OpenAI needs to raise about **$100 billion** in massive funding. Altman is well aware that if he fails to effectively suppress Google’s momentum and prove ChatGPT remains the world’s best AI product, the company’s financing ability will take a major hit. ## New Model Coming Soon, $10 Billion Financing Outlook to Be Tested Despite the pressure, OpenAI continues to push technological iteration. Altman revealed the company plans to release a new reasoning model next week. According to internal evaluations, this model “outperforms (Google’s) Gemini 3” in terms of performance. However, Altman also admits there’s much more work to be done to improve the overall ChatGPT experience. The new model’s performance and the overall optimization of ChatGPT will be key in determining OpenAI’s future financing prospects. The company expects to spend tens of billions of dollars on R&D and product operations over the next few years, making its financing ability crucial. According to a forecast from this summer, despite the huge cash burn, the company expects ChatGPT subscription revenue to reach $10 billion this year, $20 billion next year, and about $35 billion in 2027. Whether it can maintain its lead amid fierce competition will be central to validating this ambitious blueprint. ## Competition Heats Up, Growth Shows Signs of Concern The immediate trigger for this “Code Red” is the increasingly intense market competition and concerns over growth potential. Three years ago, it was the emergence of ChatGPT that forced Google to initiate its own “Code Red” to counter threats to its search business. Now, the tables appear to be turning. In October, Google revealed that monthly active users for its Gemini chatbot had risen from 450 million in July to 650 million. Moreover, Google has launched an “AI mode” in its search application, making it functionally closer to a chatbot. Although in total user numbers, Gemini still trails behind OpenAI’s announced ChatGPT figures, its momentum cannot be underestimated. Meanwhile, AI models from companies like Anthropic have also received widespread acclaim from developers. Against this backdrop, Altman has warned employees that Google’s strong comeback could have an economic impact on the company. CFO Sarah Friar has also mentioned concerns over slowing growth to investors, though she did not specify which growth metric. For a company that needs continual massive financing to sustain operations and R&D, any sign of slowing growth could challenge investors’ confidence. Risk Warning and Disclaimer There are risks in the market, and investments should be made carefully. This article does not constitute personal investment advice, nor does it take into account the particular investment goals, financial situations, or needs of any individual user. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their specific circumstances. Investment based on this information is at your own risk.