Sam Altman Acknowledges Google’s Lead in the AI Race — But Says OpenAI Will Soon Regain the Crown

In partnership with

Shoppers are adding to cart for the holidays

Over the next year, Roku predicts that 100% of the streaming audience will see ads. For growth marketers in 2026, CTV will remain an important “safe space” as AI creates widespread disruption in the search and social channels. Plus, easier access to self-serve CTV ad buying tools and targeting options will lead to a surge in locally-targeted streaming campaigns.

Read our guide to find out why growth marketers should make sure CTV is part of their 2026 media mix.

Learn more.

In a remarkably candid internal memo, OpenAI CEO Sam Altman has acknowledged what many in Silicon Valley have been whispering for months—Google is currently ahead in the global artificial intelligence race. The admission, first reported by The Information, marks a rare moment of self-reflection from the company that once defined and dominated the world of generative AI. But Altman insists this lead is temporary, placing strong emphasis on OpenAI’s long-term strategy and its pursuit of artificial superintelligence, a level of AI capability far beyond the leading systems of today.

Google’s recent launch of its Gemini 3 model has fueled excitement among developers, engineers, and AI researchers. The model’s strong performance in coding, design automation, and integrated search workflows has earned it praise for being more flexible and powerful in certain tasks than its competitors. For Altman to publicly acknowledge Google’s edge shows both the intensity of the rivalry and the rapidly shifting dynamics of the AI landscape.

Google’s Gemini 3: A Powerful Leap Forward

Gemini 3 has made waves for its ability to:

• Generate high-quality website designs from simple prompts

• Create product prototypes and design concepts in minutes

• Write and debug complex code with near-human reasoning

• Integrate seamlessly with Google Search, Workspace, and creative tools

This integration across Google’s massive ecosystem provides a visibility advantage that OpenAI currently cannot match. Google’s AI is now deeply embedded in products used by billions daily—from Gmail and Google Docs to Android phones and Chrome browsers.

Developers say Gemini 3 is fast, efficient, and capable of multitasking at a level previously unseen. This has led to a shift in sentiment, with many creators now testing or even transitioning to Google’s tools for specific workflows.

Altman addressed this directly, writing in the memo:

Anthropic Joins the Race: A Three-Way Competition

While Google has taken the spotlight, Altman also highlighted another powerful competitor: Anthropic. Their Claude models have become popular for their ability to write, analyze, and debug code through simple conversation.

Anthropic’s rise is significant because its models are becoming favorites among developers who value interpretability, reliability, and detailed reasoning. Claude’s growing influence directly threatens OpenAI’s coding-focused technologies like Codex and the engine behind GitHub Copilot.

The competition is now a tight three-way race:

• Google, with its deep infrastructure and ecosystem

• OpenAI, with its research-first approach

• Anthropic, with a focus on safety and advanced reasoning

This triad is reshaping the AI industry more rapidly than any previous technological wave.

Google’s Massive Financial Edge

Beyond technical progress, Google holds a structural advantage that few companies on earth can compete with—raw financial power.

• Market value: $3.5 trillion

• Annual free cash flow: Over $70 billion

• Global data center network: Among the world’s largest

• Google Cloud customers: Including rivals like OpenAI and Anthropic

Ironically, Google earns billions each year by renting cloud infrastructure to companies that are trying to defeat it in the AI arms race.

This gives Google the ability to train larger models, deploy faster, and scale globally—often at a pace smaller companies simply cannot match.

OpenAI’s Ambitious and Costly Path to Future AI

Altman’s memo also touched on the staggering cost of building frontier AI. Despite projecting $13 billion in revenue this year, OpenAI is burning cash at an unprecedented rate, with estimates suggesting its expenses could approach $100 billion due to the escalating cost of training advanced models.

The CEO acknowledged that OpenAI has chosen a challenging path:

User Engagement Slows, But Confidence Remains

OpenAI’s CFO Sarah Friar recently confirmed that ChatGPT engagement—after a year of explosive global adoption—has plateaued. While usage remains strong, it no longer grows at the viral rate seen in its first year.

However, Friar emphasized that OpenAI’s enterprise business and developer tools continue to expand, giving the company a stable financial foundation. New product lines such as AI agents, multimodal tools, and creative platforms are also contributing to long-term revenue.

Altman’s memo appeared intended to reassure employees that slowing engagement is not a sign of weakness but a natural shift as the market matures and competition increases.

A Memo That Blends Realism and Determination

Altman’s message strikes a careful balance. It acknowledges real competition, rising costs, and shifting market momentum. But it also energizes employees, reminding them that OpenAI has repeatedly defied expectations.

From GPT-2 to ChatGPT, from DALL·E to Sora, the company has delivered breakthroughs that transformed global understanding of what AI can do. Altman is betting that OpenAI’s next generation of models—and its superintelligence efforts—will once again set the standard for the industry.

The Race Is Far From Over

While Google is enjoying its moment with Gemini 3, the future of AI remains fluid. Innovation cycles are accelerating, and leadership can shift within months. OpenAI still benefits from unmatched research talent, a global developer base, and a culture built around rapid, bold experimentation.