Google CEO Admits OpenAI Beat Them to the Punch

Google CEO Sundar Pichai recently offered a frank look into the AI race, admitting that OpenAI’s unexpected 2022 launch of ChatGPT caught the tech giant by surprise. Speaking at a Salesforce technology event, Pichai confirmed that while Google was a leader in AI and was developing similar technology, OpenAI simply "put it out first," a move that reshaped the entire industry.

The 'Code Red' Moment at Google

The release of ChatGPT by OpenAI, a company backed by major rival Microsoft, sent shockwaves through Google. The chatbot’s rapid rise in popularity was so concerning that it reportedly triggered a 'code red' alert within the company. According to a report by The New York Times, this internal alarm led Pichai to redirect numerous teams, instructing them to focus all their resources on developing commercial AI products to compete with the new threat. The race was on, and the pressure was immense.

A Calculated Delay Amid High Stakes

When asked by Salesforce CEO Marc Benioff why a smaller company like OpenAI managed to overtake them, Pichai explained that Google's own AI chatbot was already in development. However, he emphasized the company's commitment to quality and stability. Pichai noted that they could have launched their own version a few months later but chose not to rush an unfinished product. He also pointed to the significant difference in reputational risk. As a global behemoth, Google faces far greater scrutiny than a smaller firm, making a cautious and deliberate approach essential for any major public release.

Looking Ahead Google's Global AI Push and Gemini 3.0

Pichai also outlined Google's ongoing commitment to leading the AI revolution. He highlighted the company's expanding presence in India, where a new AI hub represents its largest investment outside of the U.S. This state-of-the-art facility will primarily run on clean energy and will be supported by new subsea cables to improve digital connectivity. In a clear signal of its future ambitions, Pichai also announced that Google plans to release Gemini 3.0, the next generation of its advanced AI model, later this year.