Following the release of Google's Gemini 3, which the tech giant touts as its "most intelligent" model, OpenAI is now on the defensive. The shift in power reportedly caused OpenAI CEO Sam Altman to hit the panic button after a memo leaked to The Wall Street Journal revealed that Altman declared a "code red" at the company.

An internal memo to OpenAI workers from CEO Sam Altman reviewed by multiple publications shows the company is feeling squeezed.

There is cutthroat competition for Australian AI customers and some start-ups say OpenAI is starting to lag the likes of Google and Anthropic.

OpenAI has made huge spending commitments totaling more than $1 trillion. Those include a $300 billion cloud-computing deal with Oracle and a $250 billion arrangement with Microsoft. OpenAI is valued at around $500 billion and expects to reach over $20 billion in annualized revenue this year.

For example, OpenAI could create personalised ads on ChatGPT that promote products that you really want to buy. It might also sneak in ads in the search ads, similar to Google Search ads. The leak suggests that ads will initially be limited to the search experience only, but this may change in the future.

Google and OpenAI have implemented usage limits on their AI image and video generation tools due to overwhelming demand and strained computing resources. Google's Nano Banana Pro now restricts free users to two photos daily,

The internet giant has released new AI software and struck deals, such as a chip tie-up with Anthropic PBC, that have reassured investors the company won’t easily lose to ChatGPT creator OpenAI and other rivals.