OpenAI ChatGPT Faces New Challenges as Competition Intensifies in 2025

ChatGPT’s Continued Dominance Under Pressure

As ChatGPT marks its third anniversary since launching on 30 November 2022, OpenAI’s groundbreaking chatbot continues to dominate the AI landscape whilst facing mounting competitive pressures. The platform has reached 800 million weekly active users as of 2025, doubling from 400 million in February, solidifying its position as the world’s most popular AI assistant.

However, recent internal developments suggest the company is taking competitive threats seriously. OpenAI CEO Sam Altman sent a memo to staffers outlining a ‘code red’ effort to improve ChatGPT, as the company faces increasingly stiff competition from rivals like Google and Anthropic.

Major Product Updates and New Features

OpenAI has been rapidly rolling out new capabilities to maintain its competitive edge. Recent launches include GPT-5.1, described as a smarter, more conversational ChatGPT, alongside ChatGPT Atlas, a browser with ChatGPT built in. The company has also introduced innovative features such as ChatGPT Pulse, a new experience where ChatGPT proactively does research to deliver personalised updates based on chats, feedback, and connected apps.

ChatGPT search has been upgraded for all users to provide even more comprehensive, up-to-date responses, whilst memory improvements are rolling out to Free users, allowing ChatGPT to reference recent conversations to deliver more relevant and tailored responses.

Legal Challenges and Business Pressures

Despite its technological advances, OpenAI faces significant legal and business challenges. A Manhattan judge has ordered OpenAI to provide news outlets with millions of anonymous chats between ChatGPT and its users in a major copyright infringement case, raising questions about how the AI model uses copyrighted journalistic content.

On the financial front, OpenAI said it is on track to reach more than $20 billion in annualised revenue run rate this year, with plans to grow to hundreds of billions in sales by 2030. Yet the company’s valuation has swelled to $500 billion, creating immense pressure to justify such lofty expectations.

Looking Ahead: The Future of AI Assistance

As ChatGPT continues to evolve, its impact extends far beyond technology. The platform remains in the number one spot on Apple’s free app rankings whilst serving as the catalyst for a flood of generative AI products. The coming months will prove crucial as OpenAI navigates intensifying competition, legal challenges, and the pressure to maintain innovation whilst meeting extraordinary growth expectations in an increasingly crowded AI marketplace.