In a memo to staff on Monday (local time), Altman told employees that the company was “at a critical time for ChatGPT”, and
that resources must be devoted to fending off the new competition to its chatbot, the reports said.

Altman said that other projects would now be delayed, including a plan to introduce advertising to the chatbot.

According to the memo reported in the Information and Wall Street Journal, Altman said “code red” meant OpenAI would also delay progress with other products such as AI agents, which aim to automate tasks related to shopping and health.

With a half-a-trillion-dollar valuation, OpenAI is the world’s most valuable private company.