OpenAI CEO Sam Altman has reportedly warned staff of challenging months ahead due to intensifying AI competition. He highlighted the threat from Google, which is rapidly integrating its Gemini AI into its vast product ecosystem.
OpenAI CEO Sam Altman has reportedly told employees to gear up for a challenging few months, as competition in the AI world intensifies — especially from Google, which has begun pushing out major upgrades at breakneck speed. According to various reports, Altman shared an unusually candid internal memo where he admitted that Google’s renewed focus on AI is beginning to tilt the balance of power in Silicon Valley. The message came at a time when investor enthusiasm for the sector is also cooling, putting added pressure on companies like OpenAI.
“Rivals are catching up, but we’re still ahead”
In the memo, Altman also pointed to the steady rise of Anthropic. The company’s Claude assistant has been praised for its ability to generate code through simple conversations, a space where OpenAI has long dominated.
However, he reassured employees that OpenAI is not falling behind. With recent upgrades to its own Codex technology, Altman believes the company is still in a strong position.
He wrote that the team shouldn’t be discouraged by competitors releasing strong models. OpenAI, he said, has built enough resilience and talent to stay ahead.
“It s**ks that we have to do so many hard things at the same time — the best research lab, the best AI infrastructure company, and the best AI platform,” Altman reportedly said. “But I wouldn’t trade places with any other company.”
Google’s big advantage: It’s everywhere
A major concern Altman raised is Google’s enormous reach. Over the last few months, Google has been weaving its Gemini assistant deeper into its products, from its search app to Gmail to Android phones.
And with the arrival of Gemini 3.0, Google has taken that integration even further. Instead of asking people to download a separate chatbot, Google is quietly slipping advanced AI features into tools people already use every day. Billions of users are now experiencing Gemini without even seeking it out.
That built-in audience gives Google a massive edge, something Altman acknowledged openly.
Why this is a problem for OpenAI
OpenAI, by contrast, relies on users coming directly to ChatGPT or intentionally choosing its developer tools. As Google continues to spread Gemini across its ecosystem, OpenAI must work harder to keep users engaged and loyal.
Altman’s memo appears to be a reality check, not a warning of crisis, but a reminder that the race is tightening.