Sam Altman admits Google is ahead of OpenAI in the AI race, but only temporarily
OpenAI CEO Sam Altman admitted that Google’s Gemini 3 model has a temporary lead in AI. He assured that OpenAI is moving forward rapidly and is focused on developing superintelligence.
OpenAI CEO Sam Altman has admitted that Google is enjoying a temporary lead in the artificial intelligence race. In an internal memo to employees, he reportedly acknowledged that Google’s progress with its new Gemini 3 model “may create some temporary economic headwinds for our company”, though he also said that OpenAI is “moving rapidly” and will soon gain the upper hand. Altman’s candid tone, revealed by The Information, marks a rare public concession from the man behind ChatGPT. The memo comes at a time when user engagement for viral chatbots has waned, and Google’s Gemini 3 is receiving praise from developers for its coding and design capability.
Google takes the lead, but not for long
Google’s latest Gemini 3 release has impressed engineers and creators alike. Developers say it has shown strong results in automating website design, designing product prototypes, and writing code, areas where OpenAI’s models once dominated. The new model is based on the expanded integration of AI into Google’s search engine, productivity apps and creative tools, giving it a major visibility advantage.
Altman accepted the challenge head-on. “As a company we have built enough strength to stand up to the great models competing elsewhere,” he wrote. “(Therefore), it is extremely important for the majority of our research team to really focus on superintelligence.”
In short, he wants OpenAI to look beyond short-term AI model rivalries and focus on the larger mission of developing artificial superintelligence before anyone else.
But Google isn’t the only competitor that is leaving OpenAI behind. Altman also name-checked Anthropic, whose cloud AI system is making waves with its ability to generate and debug computer code through natural conversations. This is a direct threat to OpenAI’s own code-centric systems, including Codex, the model behind GitHub’s Copilot.
Meanwhile, Google’s benefits go beyond technology. With a market cap of $3.5 trillion and free cash flow of more than $70 billion in the last year, it has both the infrastructure and financial strength to deliver on its AI ambitions. Ironically, some of that money comes from renting cloud services to its competitors, including OpenAI and Anthropic.
OpenAI’s path to superintelligence
Altman’s memo reassured employees that OpenAI was still in solid shape despite what he called “temporary economic adversity.” According to internal data, OpenAI is expected to generate revenue of $13 billion this year, but its cash burn rate, estimated at nearly $100 billion, highlights the huge cost of AI research and increasing computing power.
“We have to do a lot of hard things at the same time – be the best research lab, the best AI infrastructure company, and the best AI platform/product company – but that’s our position in life,” Altman told employees. “And I wouldn’t trade positions with any other company.”
His message was intended to boost morale amid the public’s growing fascination with Google’s progress and concern over the slow pace of OpenAI. Finance chief Sarah Fryer also confirmed that ChatGPT’s user engagement has cooled, but the company’s financial position remains strong.
The memo, part pep talk and part reality check, highlights just how fierce the AI race has become. For now, Google may be making headlines with Gemini 3’s capabilities, but Altman seems unfazed. He’s betting that OpenAI’s long-term focus on building the first true superintelligence will eventually reclaim the crown.
And if history is any guide, it cannot bluff. After all, OpenAI is the company that first made the world fall in love with AI.