Three years ago, Google scrambled to respond after ChatGPT shook the company. Now it's Sam Altman issuing emergency memos. On December 2, the OpenAI CEO declared a "code red" internally, pulling resources from advertising and AI agents to shore up ChatGPT after Google's Gemini 3 launch sent shockwaves through the industry.
Gemini 3, released November 18, topped the LMArena leaderboard with a 1501 Elo score and hit 37.4% on the Humanity's Last Exam benchmark, beating GPT-5 Pro's previous high of 31.64%. The shift was immediate. Salesforce CEO Marc Benioff, a ChatGPT loyalist, announced on X that he was switching after just two hours with the new model: "The leap is insane," he wrote, citing speed, reasoning, and multimodal improvements.
Google's cloud business is feeling the tailwind. Q3 revenue for Google Cloud Platform grew 34% year over year to $15.1 billion, with AI services now used by more than 70% of existing customers. The company signed more billion-dollar cloud deals last quarter than in the previous two years combined, per CEO Sundar Pichai. Anthropic expanded its TPU commitment in October, gaining access to up to 1 million Google processors in a deal worth tens of billions.
User numbers are shifting too. The Gemini app now claims 650 million monthly active users. A TD Cowen survey found Gemini's MAU penetration rose from 24% to 26% between July and October, while ChatGPT's slipped from 36% to 35%. The gap is narrowing fast.
The Bottom Line: OpenAI built a two-year head start with ChatGPT, and Google erased it in six weeks.
QUICK FACTS
- Gemini 3 launched November 18, 2025
- LMArena score: 1501 Elo (record high)
- Google Cloud Q3 revenue: $15.1 billion (up 34% YoY)
- Gemini app MAU: 650 million
- Anthropic TPU deal: up to 1 million processors
