Code Red: "We're At A Critical Time For ChatGPT."

Dec 11, 2025

18:24

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OpenAI just declared Code Red. But here's the twist: three years ago, it was Google in crisis mode. When ChatGPT launched, Google's founders came back to pull all-nighters, teams were reassigned overnight, and it felt like the beginning of the end for Google's dominance. Now the tables have turned.

In this episode of In The Loop, we explore why OpenAI faces the a code-red crisis—talent drain, user attrition, a $27 billion funding gap, and desperate product pivots—while Google is leading with an 87-92% chance of having the top model by year's end, while

Market leadership never lasts forever. The question is: can OpenAI turn it around?

⏭️ Episode Highlights

(01:15) – Code Red at OpenAI and what it really means

(05:30) – What does this tell us about OpenAI's strategy?

(06:25) – The financial pressures crushing OpenAI's business model

(09:40) – User feedback and the over-refusal problem

(10:50) – The switching problem: why developers are choosing Claude

(12:40) – How Google and Anthropic are winning the competition

(14:10) – The talent drain hitting OpenAI

(15:00) – Four things to watch for in the AI market

(16:50) – Closing thoughts on market leadership and comebacks

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