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Rani Molla

Even OpenAI is worried about Google’s Gemini 3

When OpenAI’s ChatGPT burst onto the scene in November 2022, it sent shock waves through Silicon Valley’s biggest names. Google, Microsoft, and Amazon had all been developing generative AI, but OpenAI’s breakthrough sparked an all-out race to catch up. Until now.

It seems that OpenAI CEO Sam Altman is feeling the heat from Google, whose newly released Gemini 3 has been receiving stellar reception from AI leaderboards, analysts, and consumers alike.

“We know we have some work to do but we are catching up fast,” OpenAI CEO Sam Altman told colleagues last month, after learning about Google’s AI advances, The Information reports. “I expect the vibes out there to be rough for a bit.”

Google’s AI progress, Altman said, could “create some temporary economic headwinds for our company,” but he said OpenAI would emerge on top.

However, it’s worth remembering that, despite OpenAI’s first-mover advantage and supersized valuation, Google is a substantial adversary that is peppering its AI models across its giant existing — and highly lucrative — product suite.

It seems that OpenAI CEO Sam Altman is feeling the heat from Google, whose newly released Gemini 3 has been receiving stellar reception from AI leaderboards, analysts, and consumers alike.

“We know we have some work to do but we are catching up fast,” OpenAI CEO Sam Altman told colleagues last month, after learning about Google’s AI advances, The Information reports. “I expect the vibes out there to be rough for a bit.”

Google’s AI progress, Altman said, could “create some temporary economic headwinds for our company,” but he said OpenAI would emerge on top.

However, it’s worth remembering that, despite OpenAI’s first-mover advantage and supersized valuation, Google is a substantial adversary that is peppering its AI models across its giant existing — and highly lucrative — product suite.

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OpenAI reportedly delaying erotica feature to focus on “gains in intelligence”

OpenAI is delaying its planned “adult mode,” as it seeks to shore up ChatGPT’s core capabilities before the chatbot can generate erotic content.

A source within OpenAI told tech news site Sources that the company will miss its Q1 target for launching the feature:

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

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Anthropic will sue the Pentagon over supply chain risk designation, Amodei says

Anthropic CEO Dario Amodei said in a public post that the company will sue the Pentagon after receiving a letter from the Department of Defense officially designating Anthropic as “a supply chain risk to America’s national security.”

Amodei says that the effect of the unprecedented designation for an American company is more narrow than originally described, and that most of its customers would not be affected.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

$40B💰

SoftBank is going to great lengths to double down on OpenAI — including taking on significant debt. After completing a $40 billion investment to become one of the ChatGPT maker’s largest backers, the Japanese conglomerate is now seeking a roughly $40 billion loan with a 12-month term, Bloomberg reports.

The financing would be SoftBank’s largest-ever dollar-denominated deal. The AI investment has helped lift profits, but it is also pressuring SoftBank’s credit profile.

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