OpenAI Unveils New LLM ‘Garlic’ as ChatGPT Enters Code Red Mode

OpenAI Develops New LLM ‘Garlic’ Amid Competitive Pressures and Code Red Alert

OpenAI, the leading AI research company, is reportedly developing a new large language model (LLM) codenamed ‘Garlic’, even as CEO Sam Altman directs all internal resources to enhance ChatGPT. According to reports from The Information, Garlic is designed to outperform competitors in coding and reasoning tasks, marking a strategic move toward specialized AI applications in high-value industries such as biomedicine and healthcare. The development of Garlic coincides with a critical period for OpenAI, as it faces increasing pressure from competitors like Google and Anthropic, which have recently launched state-of-the-art AI models.

Internal evaluations suggest that Garlic demonstrates superior performance when compared with Google’s Gemini 3 and Anthropic’s Claude Opus 4.5, particularly in coding and reasoning capabilities. Mark Chen, OpenAI’s Chief Research Officer, shared that the model has consistently performed well in internal testing, which underscores the company’s ambitions to push the boundaries of AI. OpenAI plans to launch Garlic as GPT-5.2 or GPT-5.5 by early 2026, positioning it as a next-generation model capable of advanced reasoning, coding assistance, and specialized AI applications.

The announcement of Garlic coincides with CEO Sam Altman declaring ‘Code Red’ on December 1, signaling urgency within the company to prioritize ChatGPT improvements. In an internal memo, Altman instructed employees to focus on enhancing ChatGPT’s responsiveness, accuracy, and personalization while delaying other projects, including broader advertising initiatives. This step reflects the competitive intensity in the AI industry, where rapid innovation and user engagement are key to sustaining market dominance.

The urgency stems partly from recent competitive moves. Google released Gemini 3 on November 18, integrating it across its ecosystem. Gemini 3 represents Google’s fastest rollout to date and has already shown top performance in benchmark leaderboards for image editing, text generation, and multimodal reasoning. Likewise, Anthropic introduced Claude Opus 4.5, claiming it as the world’s leading model for coding tasks. These developments highlight the rapidly evolving AI landscape and reinforce the need for OpenAI to maintain technological superiority.

A major factor driving OpenAI’s urgency is a decline in ChatGPT usage following competitors’ releases. According to Deedy Das, a Palo Alto-based entrepreneur, in the two weeks after Gemini 3’s launch, ChatGPT’s unique daily active users (7-day average) fell by approximately 6%. Since OpenAI’s revenue model relies heavily on its consumer business and user growth, this dip poses a tangible challenge. Das noted on LinkedIn that OpenAI’s $500 billion valuation depends on sustained user momentum to achieve its year-end target of $20 billion in annual recurring revenue (ARR). The decline in usage could represent the first significant setback in the company’s history, highlighting the importance of rapid innovation and competitive positioning.

Garlic is being positioned as a dual solution: it addresses OpenAI’s ambition to expand into specialized high-value domains while enhancing ChatGPT’s existing capabilities. By combining coding, reasoning, and domain-specific knowledge, Garlic aims to transition OpenAI from a generalist AI provider to a specialized AI innovator. This strategic pivot signals a broader industry trend where AI companies increasingly focus on niche applications and value-driven solutions to maintain differentiation in a highly competitive landscape.

In summary, OpenAI is responding to a rapidly evolving AI ecosystem by developing Garlic, a next-generation LLM expected to outperform existing competitors. Coupled with the Code Red initiative to prioritize ChatGPT improvements, the company is aligning its resources and strategy to ensure market leadership. As competition intensifies, OpenAI’s ability to innovate, maintain user growth, and deliver specialized AI solutions will determine its continued dominance in the global AI landscape. Garlic, set for release as GPT-5.2 or GPT-5.5, represents both a technological leap and a strategic move to safeguard OpenAI’s position amid mounting industry pressures.