OpenAI to launch new model next week, aiming to outpace Gemini 3
OpenAI’s next‑week rollout has been framed as a race‑to‑market move, a detail that surfaced in an internal memo from CEO Sam Altman. The announcement comes as the company prepares a new model designed to eclipse Google’s Gemini 3, which has been gaining traction in the chatbot arena. While OpenAI has traditionally paced its releases, the timing now feels more like a sprint than a stroll.
Executives have reportedly been meeting daily, and resources are being shifted to accelerate testing and deployment. Meanwhile, Google’s own chatbot has logged a jump from 450 million monthly active users in July to 650 million by October, underscoring the growing appetite for conversational AI. That surge has put additional pressure on OpenAI to defend its market share and reassure investors.
The backdrop of this push sets the stage for a statement that explains why the company has labeled its response “Code Red” and how the looming launch fits into a broader competitive strategy.
The accelerated launch is part of a company-wide effort internally labeled "Code Red." OpenAI is responding to increasing competitive pressure from Google, whose chatbot Gemini grew from 450 million monthly active users in July to 650 million in October. Google has also strengthened its position as Gemini 3 now leads in numerous benchmarks. Altman warned staff about "temporary economic headwinds" caused by Google's renewed surge. Advertising and agent projects get pushed back To focus fully on ChatGPT improvements and the upcoming model, OpenAI is delaying other commercial projects, The Information reports.
Will the new model live up to its promise? OpenAI says it will ship a reasoning engine next week, citing internal tests that place it ahead of Google's Gemini 3. The memo, signed by Sam Altman, frames the rollout as part of a company‑wide “Code Red” effort aimed at countering Google’s rapid user growth—Gemini rose from 450 million MAUs in July to 650 million in October.
Yet the claim hinges on an undefined “Shallotpeat mode,” and the memo admits it’s still unclear whether the comparison refers to that specific configuration. Meanwhile, the accelerated launch appears to push other OpenAI projects to the side, suggesting a strategic reallocation of resources. If the internal benchmarks hold, the model could tighten the competitive gap, but external validation is absent.
The article provides no detail on performance metrics, pricing, or rollout scope, leaving analysts without a clear picture of how the offering will be positioned in the market.
Further Reading
- Code Red at OpenAI, plans Gemini 3-beating model - Teknotum
- GPT-5.1: A smarter, more conversational ChatGPT - OpenAI
- ChatGPT launched three years ago today - TechCrunch
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Common Questions Answered
What is the internal initiative called that drives OpenAI's accelerated launch of its new model?
The initiative is labeled “Code Red,” a company‑wide effort to speed up testing and deployment in response to Google’s rapid growth with Gemini 3. It was highlighted in an internal memo signed by CEO Sam Altman.
How many monthly active users did Google’s Gemini chatbot have in July versus October, according to the memo?
The memo states Gemini grew from 450 million monthly active users in July to 650 million in October. This surge is cited as a key factor prompting OpenAI’s rushed rollout.
What does OpenAI claim its upcoming reasoning engine will achieve relative to Gemini 3?
OpenAI claims internal tests show the new reasoning engine will outperform Gemini 3 on benchmark tasks. The company expects the model to be ahead of Google’s offering when it ships next week.
What uncertainty does the memo acknowledge about the comparison between OpenAI’s new model and Gemini 3?
The memo admits the comparison relies on an undefined “Shallotpeat mode,” making it unclear how direct the performance claim is. This uncertainty suggests the advantage over Gemini 3 may not be fully quantified.