Leaked OpenAI memo reveals “Code Red” amid ongoing ChatGPT backlash

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OpenAI is in full crisis mode. A leaked memo shows CEO Sam Altman has declared “code red,” pulling teams off other projects to focus entirely on improving ChatGPT. This comes after intense scrutiny over safety issues, with some users reporting serious mental health risks and frustration that recent updates made the chatbot feel less personal.  The internet isn’t impressed. Developers also found code suggesting search ads could be coming to ChatGPT, a move some call inevitable and others call “Actual AI slop.” While ads haven’t been confirmed, Altman is reportedly preparing a new reasoning model next week, said to outperform Google’s Gemini 3, as OpenAI races to reclaim its competitive edge.

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00:00OpenAI is in full crisis mode. A leaked company memo reportedly shows CEO Sam Altman has declared

00:06Code Red, pulling teams off other projects to focus entirely on fixing ChatGPT. So what does

00:11Code Red mean for ChatGPT and why is the internet saying Altman has lost the AI race?

00:17Gizmodo reports that OpenAI CEO Sam Altman has declared a Code Red at the company to

00:22concentrate resources on improving the quality of its flagship product ChatGPT.

00:26This strategic pivot follows intense ethical and legal scrutiny over ChatGPT's safety protocols,

00:32which have been implicated in severe and sometimes fatal user mental health crisis.

00:36After the backlash, OpenAI executives reportedly took measures to make the chatbot safer,

00:41sparking further user frustration as many felt the changes made the AI feel less personal.

00:46One Reddit user complained about incorrect sources, the inability to read documents,

00:51and broken logic. Now OpenAI is doubling down on ChatGPT to make it competitive again,

00:56delaying other projects like AI health tools, shopping assistance, and the Pulse personal

01:01assistant. But the internet isn't impressed. One ex-user wrote, Code Red is executive speak for

01:07quote, our churn rate is terrifying. Another stated, from a commercial standpoint, OpenAI will be a tier

01:14two player, Google owns the real estate. And the Code Red isn't the only thing grabbing the internet's

01:19attention. Earlier this week, developers reportedly found code for what looks like search ads in the

01:24ChatGPT Android app. That leak suggests OpenAI may monetize the platform in the future with ads,

01:31possibly recommending products or websites and answers, a move some say was inevitable.

01:36Others, however, are calling the move to incorporate ads, quote, actual AI slop. And Brad

01:42feels the possibility of ads is proof that OpenAI has lost the AI race. While ads have not been

01:47officially confirmed, Altman is reportedly set to launch a new ChatGPT reasoning model next week,

01:53which is set to outperform Google's latest Gemini 3 release. Share your thoughts and follow us

01:58everywhere at What's Trending.

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