By ByteBot
On December 2, 2025, OpenAI CEO Sam Altman sent an internal memo declaring a “code red,” halting work on advertising, shopping agents, health initiatives, and the Pulse assistant to redirect all resources toward improving ChatGPT’s core capabilities. The dramatic shift comes as Google’s Gemini 3 outpaced ChatGPT in benchmark tests—scoring 1501 on the LMArena leaderboard compared to ChatGPT’s ~1200—and Gemini’s monthly active users surged to 650 million. Three years after Google declared its own “code red” over ChatGPT, the roles have reversed: OpenAI is now playing defense.
Gemini 3’s Benchmark Dominance Triggers Panic
Google launched Gemini 3 Pro in November 2025, and it immediately topped every major AI benchmark. On the LMArena leaderboard, Gemini 3 scored 1501—roughly 300 points ahead of ChatGPT 5.1. Moreover, on Humanity’s Last Exam, a 2,500-question assessment covering math, science, and reasoning, Gemini 3 achieved 37.5% accuracy compared to ChatGPT 5.1’s 26.5%. For PhD-level reasoning tasks measured by the GPQA Diamond benchmark, Gemini 3 hit 91.9%.
Benchmarks matter because they influence where developers build and where enterprises spend. When Google’s user base grew from 450 million to 650 million in just three months, OpenAI couldn’t ignore the competitive pressure. The gap isn’t just theoretical—Gemini 3 beats ChatGPT on technical accuracy, multimodal processing, and complex reasoning. Consequently, for developers evaluating API platforms, the data is clear: Google currently leads on measurable performance.
OpenAI Sacrifices Revenue and Features to Fix Core Product
Altman’s memo didn’t mince words: Everything stops except ChatGPT improvements. OpenAI postponed advertising (a revenue stream), shopping AI agents, health AI agents, and Pulse—a personalized proactive assistant meant to compete with Google Assistant. Instead, teams joined daily calls and sprints focused solely on three areas: personalization, image generation, and model behavior like speed and reliability.
This is rare in Silicon Valley’s “growth at all costs” culture. OpenAI is choosing product quality over expansion, tacitly admitting ChatGPT has fundamental gaps competitors are exploiting. For developers, this signals API improvements coming soon—expect better speed and reliability. However, don’t count on new features until core issues are resolved. The strategy is smart: Fix what’s broken before building more.
The Historical Irony: Google’s 2022 Code Red Returns
In December 2022, Google CEO Sundar Pichai declared an internal “code red” within days of ChatGPT’s launch, fearing it would threaten Search dominance. Exactly three years later, Sam Altman uses the same phrase in response to Google’s Gemini 3 surge. Furthermore, as Fortune reported, the tables have turned completely.
The parallel demonstrates how quickly competitive advantage evaporates in AI. Three years is all it took for roles to reverse. For developers, this matters: No platform is “safe” long-term. Betting entirely on one AI vendor carries risk. Therefore, the pace of innovation means advantages are temporary. Multi-model strategies—using ChatGPT for conversational tasks, Gemini for reasoning, Claude for compliance—are becoming essential rather than optional.
Anthropic Quietly Wins Enterprise While Benchmarks Dominate Headlines
While OpenAI and Google wage a public benchmark war, Anthropic’s Claude captured 40% of enterprise AI spending compared to OpenAI’s 29% and Google’s 22%, according to HSBC research. On December 4—just two days after OpenAI’s “code red”—Anthropic announced a $200 million partnership with Snowflake to embed Claude directly into enterprise data stacks. Additionally, Anthropic is reportedly preparing for one of the largest IPOs ever, with valuations around $350 billion after investments from Microsoft and Nvidia.
The consumer market chases benchmarks; the enterprise market values reliability and safety. Anthropic’s constitutional AI framework, safety-first approach, and compliance focus matter more to enterprises than raw performance numbers. This suggests a bifurcating market: consumers watch ChatGPT vs Gemini benchmark battles while enterprises quietly pick Claude. In contrast, developers in enterprise environments should pay attention—Claude’s winning where it counts: actual spending.
What’s Next: The New Model Promise
Altman’s memo promises a new reasoning model shipping “next week” (mid-December 2025) that he claims beats Gemini 3 in internal evaluations. This would mark OpenAI’s counter-punch after Gemini 3’s November dominance. However, skepticism is warranted: GPT-5’s August 2025 launch was described as “underwhelming” by industry insiders, and OpenAI faces a 300-point benchmark gap to close. Meanwhile, Altman warned staff of “rough vibes” and “temporary economic headwinds”—not exactly confidence-inspiring language.
Developers should watch this release closely. If the new model delivers, it could re-establish ChatGPT as the technical leader and justify continued API investment. Conversely, if it falls short—repeating GPT-5’s underwhelming reception—it could accelerate developer migration to Gemini or Claude. The stakes are high: OpenAI’s first major release since declaring “code red” will signal whether the strategy is working or if competitive momentum has shifted permanently to Google.
The AI race has no permanent leaders. The company that dominated 2023 is scrambling in 2025. For developers, the lesson is clear: Build on multiple platforms, stay platform-agnostic where possible, and don’t assume today’s leader will be tomorrow’s. The mid-December model release will be the first test of whether OpenAI’s strategic retreat was smart prioritization or too little, too late.
