Google’s Gemini 3 Outperforms Rivals, Prompting OpenAI’s ‘Code Red’
The artificial intelligence landscape underwent a dramatic shift this week as Google’s Gemini 3 model outperformed rival AI systems. This development led OpenAI CEO Sam Altman to declare an internal “code red”, shifting company priorities entirely towards improving ChatGPT.
Multiple industry reports indicate that Google’s latest Gemini model outperformed rivals on over a dozen industry benchmarks. This surprising turn of events even caught OpenAI’s leadership off guard. The performance gap was significant enough for Altman to reportedly halt development on other projects. These include:
- AI tools for advertising
- Digital retail healthcare agents
- An AI-powered personal assistant called Pulse
His focus is now solely on enhancing ChatGPT.
Meanwhile, Wall Street’s perception of OpenAI has dramatically shifted. Once viewed as the “golden child” of AI, questions are now being raised about its profitability and rapid spending commitments. Alphabet’s stock has surged on the news, with analysts raising price targets to as high as $400, suggesting nearly 26% potential upside.
The competitive pressure is mounting as Gemini swiftly narrows the user gap. It reached 650 million weekly users in October, compared to OpenAI’s 800 million. Industry experts note that Alphabet’s deep pockets, comprehensive AI infrastructure, and integrated ecosystem position it strongly in this evolving battle for AI dominance.
Source: CNBC