According to an internal OpenAI memo disclosed by tech media outlet The Information on November 22, CEO Sam Altman admitted in October 2025 that the company is facing strong challenges from competitors like Google, and revenue growth may fall to single digits by 2026. This warning contrasts sharply with its previously touted trillion-dollar goal, revealing internal anxiety amidst the fierce competition in the AI industry.
In the memo, Altman stated bluntly that Google's breakthroughs in areas such as pre-training have created an "economic headwind" for OpenAI, especially the performance of the Gemini 3 model in core business scenarios such as website development and coding, which directly threatens its revenue streams. Despite acknowledging a "temporary lag," he emphasized that the team needs to focus on the ultimate goal of "superintelligence," and stated that he "will not exchange positions with any company" to maintain morale.
To address these challenges, OpenAI has launched two key initiatives: developing a new language model codenamed "Shallotpeat" to fix technical vulnerabilities and partnering with Foxconn to produce AI data center components. These moves are seen as defensive measures to consolidate long-term advantages, but whether they can reverse the competitive decline remains to be seen.
