Sam Altman’s Internal Memo Sparks Panic Inside OpenAI, Here’s What He Told The Staff About Google

OpenAI CEO Sam Altman has cautioned employees to prepare for difficult months as the company faces mounting competition and signs of weakening investor enthusiasm. According to a memo obtained by The Information and cited by various reports, Altman warned that Google’s renewed push into artificial intelligence is beginning to shift the competitive landscape.

He also acknowledged the rapid progress made by rival Anthropic, whose Claude assistant has demonstrated increasingly strong capabilities in generating code through conversational prompts. However, he noted that Claude now faces fresh rivalry following OpenAI’s recent upgrade to its Codex technology.

Sam Altman Says Rivals Are Closing In, but OpenAI Still Well Positioned

In the memo, Altman reportedly conceded that competitors are narrowing the gap. Even so, he stressed that OpenAI is moving quickly and remains well placed to stay ahead. He urged employees to remain optimistic and maintain focus on long-term goals.

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“We have built enough strength as a company to weather great models shipping elsewhere competition,” Altman wrote. “(So), having most of our research team focused on really getting to superintelligence is critically important. 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/product company, but such is our lot in life. And I wouldn’t trade positions with any other company.”

Google’s Embedded AI Strategy Raises Stakes

Altman also acknowledged the competitive advantage Google enjoys due to its massive scale and integration capabilities. Google has been steadily weaving its Gemini chatbot deeper into its ecosystem, including Search and productivity tools, giving it a broad distribution edge.

The rollout of the Gemini 3.0 model underscored that strength. Instead of limiting the AI to a standalone chatbot, Google embedded the technology across its vast product suite. As a result, billions of users are now interacting with its newest AI features through everyday platforms such as Search, Workspace, and Android—often without intentionally opting in.

Questions Over OpenAI’s Momentum

Concerns about OpenAI’s slowing momentum surfaced earlier this year. On the company’s recent quarterly earnings call, CFO Sarah Friar acknowledged that engagement with the widely used ChatGPT chatbot had softened, although overall financial performance remained strong.

In his memo, Altman reiterated that competitors such as Google and Anthropic are catching up in the AI race, reinforcing the need for OpenAI to accelerate its efforts.

New Model Shallotpeat Under Development

OpenAI is also working on its next major language model. The project, internally codenamed “Shallotpeat,” is currently in development as the company prepares for its next phase of advancement.

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