OpenAI’s Sam Altman declares ‘code red’ to improve ChatGPT as rivals threaten its position

OpenAI’s Sam Altman declares ‘code red’ to improve ChatGPT as rivals threaten its position

It’s that time now to turn our right to business. Yukaro joins us for this here in the studio. Good evening to you. The boss of Open AI has declared a code red over chat GPT. Well, CEO Sam Oldman has reportedly told employees that the startup needs to drop everything else, including a planned roll out of adverts for now and focus on improving chat GPT as rivals are threatening its lead in the generative AI field. The urgent message in an internal memo first reported by the information highlights the ever tightening AI race. Luke Shrego takes a closer look. For Sam Olman, it’s code red. The open AI boss used the term in an internal memo warning his company it faced serious competition from rivals and that other projects were going on a back burner to better maintain the company’s lead with its flagship product. As more people ask ChatGpt, not just for answers, but to take action on their behalf, we see lots of room to expand. Our focus now is to keep making chat GPT more capable, continue growing, and expand access around the world. Open AAI’s Chat GPT is still the world’s favorite large language model with more than 800 million users a week and rising. But Google took a major step forward when it launched Gemini 3 last month. The tech giant’s already seen users of its own AI grow from 450 million to 650 million between July and October, and other firms haven’t been idle. France’s Mistral released its newest model on Tuesday. In tech, AI is the holy grail, what everyone wants in on the act. From Apple, which just reshuffled its AI team, to chip maker Nvidia, which has lined its coffers selling the hardware AI runs on to everyone who can afford it. And it’s not just tech giants either. Worldwide spending on AI is expected to hit $1.5 trillion this year, according to a market research company with nation states investing in what’s now seen as a strategic sector and reducing dependence on industry leaders like the US and China. So that code red, you could of course be watching all developments on that. Though the hype around AI is helping the global economy to hold up better than expected in the face of those uh pesky tariffs from Donald Trump. Well, that’s according to the Organization for Economic Cooperation and Development, which has released its latest economic outlook. It says the global economy has been resilient so far this year, likely expanding at 3.2% uh though is projected to slow slightly next year. A boom in AI um in investment has helped offset some of the trade shocks across major economies. The tech sector has been leading overall industrial output. But the OECD warns the full impact of higher US tariffs is yet to be felt and flagged several other risk factors. Among them, China’s dominance in the production of rare earths and critical minerals, key components of computers and electric cars. Recent export curbs imposed by Beijing on these metals served as a reminder about how its market dominance could potentially threaten global supply chains. Here’s the Secretary General cautioning about risks facing the global economy. Let’s take a listen. Our outlook highlights key fragilities on the horizon. From elevated trade restrictions to policy uncertainty and concerns about supply chain security to rising public spending pressures from increased defense requirements and the rising economic and fiscal impacts of population aging and vulnerabilities associated with high financial asset valuation such as for AI related investments and crypto currencies. Europe’s economy remains quite weak, in particular its historical industrial powerhouse, Germany. Well, compared to the US that’s projected to grow 2% this year, output from the 20 member Euro zone is set to expand by just 1.3%. Increased public spending in Germany has contributed to a slight uptick in Eurozone growth, but the country’s economy is still stuck in stagnation after two consecutive years of recession in 2023 and 2024. The automobile industry, a key driver of German industry, has been in crisis with tens of thousands of jobs lost over the past year due to rising competition from China, high energy costs, and years of slow investment month. Meanwhile, the rapid advance in AI is pushing some young people to look to manual labor and skilled trade rather than white collar jobs. Yeah, this is an interesting trend. A survey carried out uh in the UK of some 2,600 adults has found that half of them were concerned about AI’s impact on their jobs, with those aged 25 to 35 particularly worried. Among younger people, some are shifting to learning technical or manual skills rather than seeking higher education. A betting that plumbers and welders are less likely to be replaced by artificial intelligence. Daniel Quinnland has more. It’s hard to escape the hype around the transformational nature of AI and its potential effect on job markets. And this is causing some young people to reconsider their careers. So the reason why I chose the engineering environment and construction in general because I that made me realize when I was choosing my career path that’s something that AI won’t take over. There’s agreement white collar jobs are most at risk and one in six employers in Britain expect to reduce headcounts in the next year. According to a recent study, graduates entering the job market are most affected and they’ve been paying attention. A lot of anxiety amongst young people right now that indeed their jobs are automated away and that is at least where some of the early evidence is pointing at that it is exactly the junior jobs that are currently taking the reductions in hiring. The scale of this transformation is hard to predict but according to CB insights AIdriven startups received more than 35 billion in investments in 2024 and the momentum has only increased this year. It comes at the same time automation and robotics are developing in leaps and bounds. That’s not enough to be a risk to young plumbers anytime soon according to some. The issue with robotics is this world is designed for humans. Humans have hands, you know. So everything is designed for that kind of motor functionality. And that’s where robotics is lagging. These students are hoping their natural advantages keep them ahead of tech advancements for many years to come. You know, Yuka, my dad was a painter and decorator, and he made me do a painting and decorating apprentichip when I was 15. So, if this goes, I don’t know, pear-shaped. Perhaps I could take the brushes and paint houses. Who knows? Next, turning to the world of luxury fashion. Versace’s now become a part of its larger Italian rival, Prada. Well, Mark, the 1.3 billion euro deal was signed back in April, and the takeover has finally been completed following regulatory approval. Founded in 1978 by Jani Versace and led by his sister Donatella after his death, the Italian fashion house is known for vivid colors and bold cut. But Versace struggled to keep its style relevant and and saw sales plummeting after a post-pandemic luxury boom subsided. Prada has long sought to acquire its smaller Italian rival, even though their styles are very different. As one analyst put it, it’s a minimalist Prada buying a maximalist Versace. And that’s it from the business desk. Well, it all looks far classier than I could ever possibly be. Perhaps something for you, Yuka. All the very best. Thank you very much. Yuka Roy there with all the business. She’s back later.

OpenAI CEO Sam Altman declared a ‘code red’ to improve ChatGPT, planning to put all other projects on the backburner. The urgent call in an internal memo, first reported by The Information, highlights the ever-tightening race for AI supremacy with Google’s recent launch of its new Gemini chatbot threatening ChatGPT’s lead in the field. Also in the segment, the OECD says the global economy has held up better than expected this year in the face of Donald Trump’s tariffs, but warns risks remain. 

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