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OpenAI chief executive Sam Altman has declared a \u201ccode red\u201d situation at the AI startup amid increased competition to ChatGPT<\/a>, according to reports.<\/p>\n In an internal memo, seen by The Information and The Wall Street Journal, Mr Altman told employees that ChatGPT\u2019s quality needed to improve in order to keep pace with rivals like Google Gemini<\/a>.<\/p>\n Google released the latest version of its AI model last month, with Gemini 3 surpassing ChatGPT in a range of benchmark tests.<\/p>\n The tech giant said it represented a \u201cnew era of intelligence\u201d after it set a new record score on Humanity\u2019s Last Exam<\/a> \u2013 a test created by AI safety researchers to identify artificial superintelligence.<\/p>\n Gemini 3 also drew widespread praise for its Nano Banana image generator, as well as its deep reasoning abilities.<\/p>\n \u201cI\u2019ve used ChatGPT every day for three years. Just spent two hours on Gemini 3. I\u2019m not going back. The leap is insane,\u201d said Salesforce CEO Marc Benioff.<\/p>\n Mr Altman publicly congratulated Google shortly after its release, calling it a \u201cgreat model\u201d in a post<\/a> to X.<\/p>\n Privately, he reportedly told employees that ChatGPT had fallen behind Google, writing, \u201cwe know we have some work to do but we are catching up fast\u201d.<\/p>\n OpenAI<\/a> has not commented on the leaked memo. The Independent has reached out to the company for more information.<\/p>\n ChatGPT head Nick Turley indirectly addressed the increased competition in the AI chatbot space in a series of posts to X on Monday, noting that OpenAI\u2019s product remained the \u201cnumber one AI assistant worldwide\u201d.<\/p>\n