Leaked OpenAI Memo Highlights Competitive Pressure from Google Gemini 3.0

A leaked internal memo from OpenAI CEO Sam Altman acknowledged Google’s Gemini3 as a significant competitive threat, noting OpenAI is ‘catching up fast’ after Gemini3 outperformed GPT-5.1 in benchmarks [1]. The memo referenced ‘rough vibes’ and potential cost discipline (e.g., hiring freezes) to adapt to the intensified AI race [1]. Google’s Gemini3 launch on November18, 2025, marked a major milestone with state-of-the-art reasoning, multimodal capabilities, and integration into core products (search, Gemini app) [2][3]. User metrics show Gemini app has 650 million monthly active users [2], while ChatGPT had 700 million weekly users in August 2025 [3]. Google’s full-stack AI approach (infrastructure + models + products) gives it an edge [2][3], while OpenAI faces pressure to accelerate model updates (e.g., GPT-5.2) [1].

1. Google’s full-stack integration of Gemini3 into core products (search, Vertex AI) enhances its competitive position [2][3].
2. OpenAI’s potential strategic pivot to accelerate model development and cost discipline may mitigate competitive risks [1].
3. The AI race is intensifying, with benchmark battles and accelerated product cycles becoming the norm [1][2][3].

• Risks
  : OpenAI faces reputational risk if internal disarray is confirmed [1]; potential talent retention challenges amid competitive pressure.
• Opportunities
  : Google (GOOGL) can leverage Gemini3’s integration to boost user engagement and enterprise adoption [2][3]; OpenAI may pivot to monetize new features or partnerships [1].

The leaked memo signals a critical shift in the AI landscape, with Google gaining momentum via Gemini3’s technical superiority and product integration. OpenAI’s response (wartime operations, cost discipline) indicates a strategic pivot to maintain parity. Stakeholders should monitor model updates from both companies and competitive dynamics in the AI space.