OpenAI CEO Sam Altman has acknowledged in an internal memo that Google's advancements in AI could pose 'short-term economic headwinds' for OpenAI. Altman noted that Google's new AI models might currently be ahead, emphasizing the need for OpenAI to continue its development efforts. He praised Google's 'excellent results' in model pre-training and mentioned OpenAI's ongoing work on a new model, Shallotpeat, to overcome technical challenges. Despite OpenAI's significant $500 billion valuation, competitors like Anthropic and Google are intensifying their efforts, with Google's Gemini chatbot closing the gap with ChatGPT.