OpenAI Faces Temporary Competition Surge
OpenAI CEO Sam Altman has reportedly acknowledged that Google may currently hold a temporary advantage in the AI race. In an internal memo, he admitted that Google’s progress with its Gemini 3 model could create “short-term economic challenges” for OpenAI. Still, he stressed that the company is “closing the gap quickly” and expects to regain the lead soon. The memo, revealed by The Information, reflects a rare moment of public humility from the creator of ChatGPT, especially at a time when usage of the chatbot has levelled off while Gemini 3 gains increasing attention from developers.
Google takes the lead, but not for long.
Engineers and creators have been impressed by the capabilities of Google’s Gemini 3. Developers note that the model excels in tasks like website automation, generating prototypes, and writing code — areas where OpenAI previously held a strong lead. Its integration across Google Search, Workspace, and creative tools also gives it a major advantage in visibility and adoption.
Altman addressed the situation directly, telling employees that OpenAI is strong enough to withstand other companies releasing breakthrough models. He emphasized the importance of staying committed to building AI that goes far beyond current capabilities.
His message signals that OpenAI should focus less on short-term competition and more on its long-term ambition: developing artificial superintelligence ahead of all rivals.
Google isn’t the only company on OpenAI’s radar. Altman also mentioned Anthropic, noting that its Claude model has been gaining recognition for its ability to produce and debug code through natural conversation. This presents a direct challenge to OpenAI’s coding technologies, including Codex — the model behind GitHub Copilot.
Google’s strength also lies in its financial and infrastructure resources. With a valuation of $3.5 trillion and over $70 billion in free cash flow last year, the company has enormous capacity to fuel rapid AI progress. Some of its revenue even comes from cloud services used by competitors like OpenAI and Anthropic.
OpenAI’s Vision Toward Superintelligence
Altman’s memo reassured employees that OpenAI remains on solid footing, despite what he described as “temporary economic pressure.” Internal figures indicate that the company is projected to earn around $13 billion this year, though its nearly $100 billion burn rate highlights the immense cost of scaling research and computation.
He told staff that OpenAI must simultaneously operate as a leading research institution, a top-tier infrastructure provider, and a successful product platform — an extremely challenging combination. Nonetheless, he said he wouldn’t trade places with any other company in the industry.
His comments aimed to boost morale amid growing excitement around Google’s recent advancements and growing concerns about OpenAI’s pace. CFO Sarah Friar also mentioned that while ChatGPT engagement has cooled, the company remains financially strong.
The memo — part encouragement and part reality check — reflects how intense and competitive the AI landscape has become. Although Google is currently capturing attention with Gemini 3, Altman remains confident that OpenAI’s long-term push toward superintelligence will ultimately put the company back at the forefront.
And if past experience is any indication, his optimism may not be misplaced. After all, OpenAI is the organization that first sparked mainstream fascination with modern AI.
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