Former Google SVP Sridhar Ramaswamy reveals that Google has a history of mobilizing intensely against threats, using all-hands-on-deck initiatives. Its recent AI surge isn't surprising to insiders who know its ability to activate a 'war' footing when challenged.
Related Insights
Tech giants like Google and Microsoft are spending billions on AI not just for ROI, but because failing to do so means being locked out of future leadership. The motivation is to maintain their 'Mag 7' status, which is an existential necessity rather than a purely economic calculation.
Facing intense pressure from Google's Gemini and Anthropic's Claude, OpenAI initiated a "Code Red," halting side projects to refocus exclusively on improving the core ChatGPT experience. This demonstrates how external threats can be a powerful management tool to eliminate distractions and rally a company around its primary mission.
Calling a "code red" is a strategic leadership move used to shock the system. Beyond solving an urgent issue, it serves as a loyalty test to identify the most committed team members, build collective confidence through rapid problem-solving, and rally everyone against competitive threats.
CEO Sam Altman reveals "code reds" are a deliberate, frequent strategy, not panic. OpenAI treats competitive threats like pandemics, believing intense, early action is far more effective than delayed responses, even if the threat doesn't fully materialize. This reframes a crisis as a calculated, proactive maneuver.
The internal 'Code Red' at OpenAI points to a fundamental conflict: Is it a focused research lab or a multi-product consumer company? This scattershot approach, spanning chatbots, social apps, and hardware, creates vulnerabilities, especially when competing against Google's resource-rich, focused assault with Gemini.
In response to ChatGPT's launch, Stack Overflow's CEO initiated a "code red," dedicating 10% of the company to formulate a strategic response under a tight deadline. This rapid, focused allocation highlights a decisive leadership approach to managing existential technological shifts.
OpenAI is now reacting to Google's advancements with Gemini 3, a complete reversal from three years ago. Google's strengths in infrastructure, proprietary chips, data, and financial stability are giving it a significant competitive edge, forcing OpenAI to delay initiatives and refocus on its core ChatGPT product.
Following ChatGPT's 'Pearl Harbor moment,' Google's CEO was seen as a lagging peacetime leader. He responded by issuing a 'code red,' restructuring the company, and empowering AI leaders. This decisive action transformed his image and positioned Google to aggressively compete in the AI race.
For teams in hyper-competitive spaces like AI, speed is not a goal but a necessity. The team's mindset is that there is no alternative to shipping fast; it's the only way to operate, learn, and stay relevant. This isn't a choice, but a requirement for survival.
Initially, AI chatbots were seen as a threat to Google's search dominance. Instead, Google leveraged its existing ecosystem (Chrome, Android) and distribution power to make its AI, Gemini, the default on major platforms, turning a potential disruptor into another layer of its fortress.
