Google's latest developments in artificial intelligence (AI) may cause short-term economic challenges for OpenAI. In the near future, it...
Google's latest developments in artificial intelligence (AI) may cause short-term economic challenges for OpenAI. In the near future, it could result in a tough environment (uncomfortable atmosphere).
As per a report from The Information on the 20th (local time), Sam Altman, CEO of OpenAI, recently shared an internal message with employees. In it, he stated, "Google has made impressive progress lately, particularly in pre-training," and "We recognize there's more to accomplish, but we're making rapid improvements." This is the first instance where Altman directly mentioned Google as a competitor, recognizing it as a challenge. He later added, "I don't want this message to be discouraging," and motivated the team by saying, "Our company is performing exceptionally well and is expected to keep up the momentum."
◇Google's Technological and Economic Advantages
Behind this memo is Google's technological strength. The AI industry has been abuzz since Google recently introduced 'Gemini 3,' reportedly the most advanced AI model to date, and 'Nano Banana Pro,' an image generation and editing model built upon it. Gemini 3 Pro achieved 1,501 points on the LM Arena leaderboard, outperforming Gemini 2.5 Pro, the previous top model. In Humanity's Last Exam, which evaluates complex human reasoning and problem-solving, Pro scored 37.5%, while DeepSeek achieved 41%. Most existing AI models scored around 20%, whereas OpenAI's GPT-5 Pro reached 30.7%. Two days later, on the 20th, Google launched 'Nano Banana Pro,' an image generation and editing tool based on Gemini 3, featuring improved 'text rendering' abilities, including high-resolution, realistic Hangeul translation.
Altman and international media outlets along with AI specialists have commended Gemini 3's technological features. Ethan Mollick, a professor at the Wharton School of the University of Pennsylvania, stated, "Gemini 3 demonstrates the ability to act as an agent rather than just a chatbot, with significant improvements in coding and task automation." Ben Thompson, the founder of the technology analysis newsletter 'Stratechery,' commented, "Gemini 3 has achieved the highest technical standard and may mark a pivotal moment in determining who holds the edge in the AI landscape." The Information also mentioned, "Perhaps Google could emerge victorious."
Software developers, designers, and startup companies often utilizing AI have also been impacted by the launch of Gemini 3. A representative from an AI-focused startup remarked, "Google keeps making money, has significant financial resources, and owns various platforms such as cloud services," noting, "Although OpenAI seems popular now, there were discussions two years ago suggesting it would eventually collapse, and this forecast is slowly coming true." With Google AI offering capabilities in coding, advertisement design, and other areas, developers are terminating their subscriptions to AI tools like Cursor, while designers claim, "Applications such as Canva or Figma are no longer necessary."
Industry experts generally agree that Google's Gemini and OpenAI's ChatGPT have created a duopoly in the competition for the 'best AI' title. Although organizations such as Anthropic (Claude), Meta (Llama series), and xAI (Grok) keep advancing and enhancing their models, Google, at the forefront of technology, and OpenAI, benefiting from widespread recognition and brand reputation, are regarded as the primary rivals locked in a fierce battle for market leadership.
In addition to technology, Google owns various aspects including its own TPU development, cloud services, the Chrome web browser, and hardware products such as Pixel phones. It stands out as one of the rare 'full-stack companies' able to manage all phases—from developing AI models to deploying services—internally.
In terms of finance, Google also has a significant edge. With a valuation of 3.5 trillion U.S. dollars, the company reported more than 70 billion U.S. dollars in free cash flow during just the past quarter. It offers cloud solutions to prominent firms like OpenAI and Anthropic, and continues to enjoy robust advertising income, enabling it to provide AI models at reduced costs or sometimes at no charge.
◇OpenAI’s Brand Influence
However, OpenAI's biggest advantage lies in its brand influence. As the company that led the market by launching ChatGPT in November 2022, it continues to have a significant number of users. According to The Information, OpenAI has 800 million weekly users, whereas Gemini has 650 million monthly users.
