Multiple reputable sources are reporting that OpenAI CEO Sam Altman recently told employees—via a leaked internal memo—that Google’s newest advances in AI could “create some temporary economic headwinds” for OpenAI, even as he tried to reassure staff that the company is “catching up fast” and remains well-positioned for the long run.
Altman’s message reportedly acknowledged that the external environment may be “difficult for some time.” His framing was classic morale management: describe the turbulence as short-term, emphasize confidence in the engineering teams, and signal that better days lie ahead.
Notably, OpenAI has not publicly commented on the memo. But that doesn’t make the reporting less credible. Altman is many things, but politically naïve is not one of them. He surely knew that such a memo—at this moment, with competitive pressure rising—would leak with thermonuclear speed.
My read is that the memo served two audiences. Yes, it was written to employees, but it was also written for investors: a controlled admission that the winds have shifted, coupled with a promise that OpenAI will ride out the storm and reassert its competitive edge.
I’m not convinced this optimism is warranted. The newest release of Google’s Gemini app demonstrates that generative AI is rapidly becoming commoditized. If these tools converge toward similar capabilities, the market begins to resemble cloud storage or web hosting: a handful of powerful players offering roughly interchangeable products, leaving very little room for profit.
The race is no longer about who can wow the public first; it’s about who can operate at scale, sustainably, and without burning billions. That is a very different contest.
Buckle up. Things are about to get fun.