OpenAI Code Red: ChatGPT Is in Big Trouble

Code red. Code red. Code red has been called at the open AI band camp ever since Gemini 3 released which came as a surprise. Sam Alman has reportedly called code red to urge chat GPT improvements. Now they were going to go live with adverts this week. There's been some leaked code uh to say about ads. Uh so much have been put on hold literally just because of Gemini that took every I think that took everyone by surprise to be honest. We knew it was coming. We did not know how good it is. And I've been banging on the last couple of weeks about how it's a good enough model for most people. And this is Chat Gibbt's domain. We were talking about just before the show like they're throwing things at Sora Atlas. They're they're trying to do so much and really it just comes down to when you know they've earned the the noun chat GPT, haven't they? Oh, I'll chat GPT it or chat it or whatever. You know, sometimes I say chat GBT even though actually I'm a G I'm a Gemini soy boy. Do you know what I mean? So yeah, you say like just ask chat GPT but you don't mean just like you know an open AI product. You mean like go use any AI, which I like also hate. Like Google is a nice word. Like Google it. It's a simple word, but like chat, it's just such a bad name. Yeah. Anyway. Yeah. So, reportedly reportedly chat GBT are going to come out. They're working on a new model. Did you hear about this? There's a new model that they're working on that is basically a direct response to to Gemini. The competition is not a winning thing for any of these companies because they are competing on price, right? They're competing on price and that means it's not it's not like particularly profitable. I mean, it's not pro we know that right now it's not profitable at all and it's just getting down the it's it's going down the hill. It's just getting worse and worse because just more and better like competitors are going to to raise and they will be all free or like a lot of them will be free. So it will be really hard for them to compete really hard really hard. um you know they're obviously taking a loss on all these AI companies are taking a loss you know the the ones who I mean Google because they have so many fingers and so many pies it's easier to believe that they are offsetting from other resources whereas Chad GBT literally just had the one resource and you know this is probably a bit of a hot take but it feels like advertisement is literally the bottom of the barrel when it comes to revenue, right? It's literally the last resort to earning revenue. Um, and they are they were literally about to resort to that. Chat GBT garlic is the new uh model that they are hopefully going to work on that's going to compete. Speaking of bad names. Yeah, I know. Yeah. But saying all that, you know, I'll say it again. I they're competing in an area where norm they're the normie they're the normally um AI company right and uh Gemini is good enough right so and and people the usage of Gemini has gone up since Gemini 3 I've doubled down on Gemini actually I've always preferred Gemini um and now I'm I literally I think I think perplexity was my action button but now it's is Gemini. Google might be like positioned best out of every other company to win in pretty much every uh in every what do you call it? Yeah, vertical. So for image they are Google. For video they have YouTube. Um they've got the data you know they they they've got they've got the data. They have the money you know they they are Google money. They have the infrastructure, right? They have the people. So, they have pretty much everything. And they might be the winner. And this might be a shocker, like but if I think about it, like if I'm being self-aware about it, the most um AI that I the AI that I use the most is Google search, if it makes sense. So, I I unintentional. Yes. I stopped. So on my phone, I previously would like before AI, I would just use the Google uh widget to Google stuff, right? But then I changed to opening chat GPT and starting a chat with chat GPT to ask something. Now I changed it back to just searching in the search bar, but not searching a term ask but ask actually the whole question. and I know that there will be Google giving me the summarized answer the Google AI whatever AI they are using and it's pretty good it's reliable and then I can see the links below that so that is how like I'm I see myself changing my behavior when it comes to searching and I think it makes sense and more people will do this you remember like there were even jokes about it uh how would our parents use Google, they would go to Google like 10 years ago and literally ask a whole question. And we would laugh at them because we knew that's not how Google works. You optimize for keywords, don't we? Yeah. Optimize for keywords and you got to do like colon, semicolon, dot, and like depending on where you want to target search. Now, all of this has changed back to just ask the whole question in the Google search and Google will answer you. And the whole thing is that uh OpenAI is seeing that and they are panicking and they should because they you know that they they um want to spend $1 trillion not billion but trillion dollars um in the next one decade on hardware and infrastructure and they don't have that money. They want to get investment. uh they are definitely not not making this amount of money anywhere close to it. So they want to get investment to to do that. But how will they get investment if Google is winning? So and and let's let's not forget like this is Sam's pretty much his first rodeo when it comes to a big company, right? He's he's he's managed startups before. He's been in that field, but this is him like literally taking on I mean fair play to him first and foremost, but like he's taking on Google who have so many years as an enterprise massive enterprise company. Sam probably doesn't know what he's really doing. and you know the the leaks that I sus um you know the the the court case that's ongoing I haven't heard any updates from it where basically a lot of people lost a lot of faith in Sam like has he got the chops to build this company that he's that he's managed to fall into it goes to what we were saying before the before the show about how success coming to you quickly you don't get the opportunity to actually learn the chops you know to actually do these things But you know saying all that I wanna I want to ask the audience a question like what AI are you using? Are you are you like a multi-u multi AI user for different things? Do you find that you have one AI and you just stick to it? Um because I mean yeah I'm I'm sort of in that camp but I use Gemini pretty much now because it's good at everything else and then Anthropic for code. I might dip into chat GBT for co not even chat GBT sorry I might chat jump into um GBT 5.1 for like a lot of a heavy thinking task but not really I it's just another option that I throw at when I'm coding but I'd be interested to know what our users are are using whether it's generic interesting um yeah let us know even like in the chat here just write down this is part of a larger conversation on my show command AI which we stream live every single week. We discuss the news and all things related to AI in the world of design and web.