OpenAI has reportedly issued an internal ‘code red’ alert as ChatGPT’s web traffic shows concerning declines, dropping nearly 30% from its peak earlier this year. According to Business Insider, this downturn coincides with Google’s aggressive push of its Gemini AI assistant, which has been strategically integrated across Google’s ecosystem. The timing is particularly troubling for OpenAI as it approaches a critical $100 billion funding round, with investors likely scrutinizing these user engagement metrics closely.
The competitive landscape in generative AI is intensifying, with Google leveraging its massive search dominance to promote Gemini. Sources familiar with OpenAI’s internal discussions reveal the company is exploring more aggressive strategies to counter this threat, including potentially developing its own search engine capabilities. This would mark a significant escalation in the AI wars, directly challenging Google on its home turf. OpenAI executives are reportedly concerned that Google’s ability to advertise Gemini across its platforms gives it an unfair advantage that ChatGPT cannot easily match without similar distribution channels.
Source: https://www.businessinsider.com/openai-code-red-chatgpt-advertising-google-search-gemini-2025-12