Overview
- OpenAI turned off app suggestions that users mistook for ads, with chief research officer Mark Chen acknowledging the rollout "fell short" and pledging better precision and user controls.
- Head of ChatGPT Nick Turley said there are no live ad tests in ChatGPT and that circulating screenshots labeled as ads are either not real or not advertisements.
- CEO Sam Altman issued an internal "code red" directing teams to prioritize ChatGPT’s core quality and delay other initiatives, including early advertising efforts.
- Rival pressure has intensified after Google’s Gemini 3 outperformed ChatGPT on many benchmarks, with reported gains to roughly 650 million users and higher time per visit than ChatGPT in recent analytics.
- Analysts highlight financing risks, with HSBC estimating OpenAI may need about $200 billion over four years, as market sentiment tilts toward Alphabet and away from firms tied to OpenAI’s growth story.