The Peak Daily

Code red 🔴 -  Google has OpenAI in a panic, Scholastic turns a new page with office sale.

Dec 3, 2025
OpenAI is in a frenzy after launching a Code Red to boost ChatGPT's competitiveness against Google's Gemini 3. As the AI arms race heats up, the struggle for market dominance intensifies. Meanwhile, Scholastic is making headlines by selling its Manhattan headquarters amid financial woes and a pivot towards digital. The company grapples with declining sales and shifts its focus towards streaming to engage the next generation. Tune in for insights on tech rivalries and the future of children's literature.
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INSIGHT

OpenAI's Lead Is Narrowing

  • OpenAI declared a "Code Red" to improve ChatGPT after Google’s Gemini 3 outperformed it and engagement dipped.
  • The lead OpenAI built is shrinking as rivals match or beat performance and user growth.
ADVICE

Refocus On Core Product Quality

  • OpenAI will pause projects like ads, health and shopping AI agents, and Pulse to focus on core model quality.
  • Prioritize product quality before diversifying features when facing stronger rivals.
INSIGHT

Competitors Are Gaining Users And Performance

  • Google’s Gemini 3 lifted Google's monthly active users from 450M to 650M in a few months.
  • New open-source models from competitors match ChatGPT on key benchmarks at far lower cost.
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