OpenAI declares code red as ChatGPT faces mounting pressure from Google and Anthropic

Reviewed byNidhi Govil

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OpenAI CEO Sam Altman has declared a code red, urging employees to prioritize improving ChatGPT's quality over other projects as competition intensifies. The company is fast-tracking GPT-5.2 and developing a new model codenamed Garlic to address ChatGPT's shortcomings and reclaim its lead in the AI chatbot market.

OpenAI Declares Code Red to Address ChatGPT's Shortcomings

OpenAI finds itself in an unfamiliar position as Sam Altman issued a code red directive to employees, signaling an urgent shift in priorities. The move comes after Google Gemini 3 quickly rose to the top of the LM Arena AI leaderboard, prompting Altman to tell staff that "we should be at the top of things like LM [A]rena"

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. The company is now delaying projects including advertising plans and its video app Sora to focus exclusively on improving ChatGPT's quality and core intelligence

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. This intense competition between AI companies has forced OpenAI to set aside what was once its top priority: achieving artificial general intelligence (AGI) [4](https://futurism.com/artificial-intelligence/details-em_age-data-id:ar-114465 -->

Fast-Tracking GPT-5.2 to Reclaim Lead in AI Chatbot Market

OpenAI is racing to release GPT-5.2 as early as December 9, accelerating its launch timeline in direct response to competition from Google and Anthropic

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. Originally planned for later in December, the update promises smarter reasoning, faster responses, and fewer glitches and hallucinations

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. Unlike the original GPT-5 launch, which was met with considerable disappointment from users who felt it didn't live up to expectations, GPT-5.2 represents a more focused effort on core model improvements rather than flashy features

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. The company is shelving splashy projects and experimental features in favor of raw performance, with work on ad integrations and long-term agent rollouts being deprioritized

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OpenAI's New Model Garlic Targets Google Gemini 3 and Anthropic Opus 4.5

Beyond GPT-5.2, OpenAI is developing a new model codenamed Garlic that has performed well in company evaluations compared to Google Gemini 3 and Anthropic's Opus 4.5 in tasks involving coding and reasoning tests, according to Chief Research Officer Mark Chen

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. This matters because both Gemini 3 and Anthropic Opus 4.5, released last month, set new industry standards, with the former leading in reasoning and the latter leading in coding

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. When developing Garlic, OpenAI addressed issues with pretraining, enabling the company to infuse a smaller model with the same amount of knowledge previously reserved for larger AI models

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. Chen said the model would be released "as soon as possible," with speculation pointing to early next year

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Source: Analytics Insight

Source: Analytics Insight

Strengthening Its Enterprise Push Amid Mounting Pressure

OpenAI COO Brad Lightcap acknowledged that the code red will "force" the company to focus as it faces heightened competition in both technical capabilities and making inroads among business customers

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. Speaking at Fortune's Brainstorm AI conference, Lightcap said the company is prioritizing enterprise push efforts, developing user-focused solutions like ChatGPT that boost team productivity and lower-level APIs for developers

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. Anthropic has emerged as a favorite among enterprise customers, particularly software engineers, with its Claude Code agentic coding tool reaching $1 billion in run-rate revenue just six months after becoming available

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. Instead of vetting output with human professionals, Altman is looking to make "better use of user signals," doubling down on user feedback to boost engagement [4](https://futurism.com/artificial-intelligence/details-em_age-data-id:ar-114715 -->

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