OpenAI Declares Code Red as Gemini 3 Reshapes the AI Race

OpenAI halts in-chat advertising to focus on product upgrades as Google's Gemini 3 raises the bar, signaling a tougher, more competitive AI race and shifting user loyalties worldwide.

In a fast-changing AI landscape, OpenAI activated a high-priority initiative as Google's Gemini 3 makes a powerful debut. The move shows how quickly leaders must adapt to keep momentum and maintain user trust.

Gemini 3's impact and OpenAI's response

Google's Gemini 3 has drawn strong attention for its test results and early user interest. OpenAI's chief executive officer Sam Altman described the moment as a critical time and warned about possible short-term economic hurdles as competition heats up.

Marc Benioff, CEO of Salesforce, reportedly said after testing Gemini 3 that the new model's logic, speed, and media capabilities are so compelling that he would not want to return to the old version.

ChatGPT remains widely used — about 800 million people access it each week — but Google has far greater resources and data to roll out new features quickly. The Gemini 3 rollout is already shifting attitudes among business users and developers.

OpenAI's strategic shift

To focus on product excellence, OpenAI paused in-chat advertising for ChatGPT while continuing product improvements. The company’s product chief promised a more intuitive and personalized experience and broader global access in the years ahead.

Financial outlook and valuation

Despite operating losses, OpenAI projects revenue above $20 billion this year and aims to reach the hundreds of billions by 2030. Its market value jumped from roughly $157 billion to $500 billion over the past year due to investments by SoftBank and Microsoft. The company has also signed long-term data-center agreements worth $1.4 trillion over eight years, reflecting the concern that compute capacity may become a limiting factor.

Industry reaction and outlook

Analysts say Gemini 3 sets a new bar for speed and multimodal capabilities, accelerating the race to deploy more capable AI services. OpenAI's ad pause is seen as a strategic move to protect user trust and ensure stable growth over the long term.

Industry analysts say Gemini 3 shows how fast AI models improve. OpenAI’s pause of in-chat ads signals a focus on quality and user experience over immediate monetization.

In summary, the AI race is accelerating, with product performance and user satisfaction likely to decide winners more than any single marketing push. OpenAI's actions reflect a broader shift toward sustainable, scalable AI offerings. The coming months will reveal whether this approach strengthens user loyalty and accelerates profitability.