In a rare moment of candour, OpenAI CEO Sam Altman has openly acknowledged that Google currently holds the edge in the intense global AI race. The confession came in an internal memo leaked to The Information on November 22, 2025, where Altman told employees that Google’s new Gemini 3 model is creating “temporary economic headwinds” for OpenAI. Yet he remains confident, insisting his company is “catching up fast” and will soon surge ahead.
Google’s Gemini 3 Shines While OpenAI Plays Catch-Up in AI Race
Google’s latest Gemini 3 model has won strong praise from developers and creators worldwide. Engineers highlight its standout performance in key areas:
- Automating full website design from simple prompts
- Generating realistic product prototypes in minutes
- Writing and debugging complex code faster than rivals
These strengths directly challenge OpenAI’s once-dominant position in coding and creative tools. Google also benefits from seamlessly weaving Gemini into Search, Gmail, Docs, and other products used by billions – giving it unmatched real-world visibility.
Altman did not shy away from the competition. He name-checked both Google and fast-rising Anthropic (maker of Claude) as serious threats. Still, he told staff: “We have built enough strength as a company to weather great models shipping elsewhere.” His core message: OpenAI must stay laser-focused on reaching artificial superintelligence first, not just winning short-term model battles.
Financially, Google towers over the field with a $3.5 trillion market value and more than $70 billion in annual free cash flow. Ironically, part of that cash comes from Google Cloud, which powers training for both OpenAI and Anthropic models. OpenAI, meanwhile, projects $13 billion in revenue this year but burns cash at an estimated $100 billion pace to fund massive computing clusters and research.
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Despite the pressure, Altman struck an upbeat tone. “I wouldn’t trade positions with any other company,” he wrote, framing the brutal spending and competition as the price of leading humanity toward superintelligence.
For now, Google enjoys the spotlight in the AI race. But Sam Altman is betting everything that OpenAI’s long-term vision – and its track record of surprising the world with ChatGPT- will let it reclaim the lead very soon. The battle for AI supremacy has never been fiercer, and every new model release shifts the balance, at least until the next one arrives.
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