WSJ What’s News – December 2, 2025

Episode Theme: OpenAI Declares ‘Code Red’ Amidst Intensifying AI Competition

Brief Overview

This episode of WSJ’s What’s News centers on OpenAI’s internal “Code Red” memo as mounting competition—especially from Google’s Gemini AI and Anthropic—narrows OpenAI’s industry lead. The episode also covers the latest in U.S. political maneuvering with a pivotal special election in Tennessee, a turbulent crypto market led by Bitcoin’s selloff, developing Disney succession drama, and a fresh round of bids for Warner Bros. Discovery.

Key Discussion Points & Insights

1. OpenAI Declares 'Code Red' (01:18–05:33)

What Happened:

• OpenAI CEO Sam Altman issued a “Code Red” memo to staff, the company’s most urgent alert level, reflecting acute concern about competition and product quality.
• The move signals OpenAI is prioritizing rapid improvements to ChatGPT and pausing new product launches.

Competition Heats Up:

• Google: Its Gemini AI, with advanced image generation (“nanobanana”) and superior benchmark scores, is surging in popularity and being rapidly integrated across Google’s ecosystem.
• Anthropic: The rival startup is gaining traction with business and coding customers.

“For the first time now, OpenAI feels a lot of pressure, mainly from Google, which has seen users flock to its new Gemini app. ... [Anthropic is] probably the tool of choice now for selling AI to big companies and coders as well.”
— Berber Jin, WSJ AI reporter [02:33]

What ‘Code Red’ Means:

• OpenAI’s top crisis designation (red) halts development on other products.
• Staff are temporarily reassigned to focus on making ChatGPT:
  • Faster and more reliable
  • More personal
  • More competitive in image generation

“By elevating it to Code Red, Altman is delaying the launch of other products ... and the internal memo … laid out in stark terms areas that OpenAI feels like they need to do better on.”
— Berber Jin [03:29]

Investor Impact:

• Tension lingers as sustained growth is crucial for OpenAI to deliver on massive computing deals (e.g., with Microsoft, Oracle, Nvidia).
• Target: $200 billion in revenue by 2030 (vs. ~$13 billion expected this year).
• Analyst outlook: This could be a pivotal moment or the start of a prolonged struggle.

“By their own projections, they say they need to get $200 billion in revenue by 2030 in order to turn a profit.”
— Berber Jin [04:51]

2. Crypto Markets: Bitcoin Sells Off (05:38–07:12)

Market Movements:

• Bitcoin rebounds slightly after its biggest single-day drop since March, now trading above $85,000 (far from its all-time high).
• Broader selloff reflects retreat from risk assets.

Unique Factors:

• This downturn is driven by institutional flows and macroeconomics—unlike previous “crypto winters” caused by retail bubble bursts or company collapses.

“...in previous major downturns ... those sells were mostly driven by the bursting of retail bubble or the collapse of major crypto companies ... whereas ... the downturn appears to be linked to institutional flows and traditional macroeconomic factors.”
— Vicky Ge Huang, WSJ Markets reporter [06:19]

Catalyst:

• Selloff rumors spiked after Michael Saylor’s firm (Strategy) considered selling bitcoin holdings, amplifying concerns about oversupply.

3. Political Spotlight: Tennessee Special Election (07:44–09:37)

What’s at Stake:

• Close House race between Democrat Afton Bain and Republican Matt Van Epps.
• National figures rally on both sides (Trump for Republicans; Harris/AOC for Democrats).
• Seen as a critical gauge ahead of the 2026 midterms and a referendum on Trump’s second-term performance amid declining poll numbers (Gallup: 36% approval).

“Both parties very much view this as a national proxy fight and see it as an attempt to gain voters ahead of the 2026 midterms.”
— Anvi Bhutani, WSJ reporter [09:29]

White House Media Watch:

• The administration launches an official site labeling negative coverage as “fake news,” sparking press freedom concerns.

4. Media & Entertainment Business Moves (10:03–12:32)

Warner Bros. Discovery Bidding War:

• Netflix improves its mainly cash offer for Warner Bros. Discovery’s entertainment and streaming divisions, seeking billions in financing.
• Paramount and Comcast submit rival bids; terms undisclosed.

Disney Succession Drama:

• CEO Bob Iger’s final year approaches; the board soon to name a successor.
• Two main candidates:
  • Josh D’Amaro (Disney Experiences): Oversees theme parks, consumer products, cruise ships (i.e., most profitable segment).
  • Dana Walden (Television/Streaming): Veteran executive driving TV and co-heading streaming; believed best for those prioritizing Disney’s content pipeline.

“He’s very charismatic, which is very important for any top executive at Disney because it’s such a public facing company.”
— Ben Fritz, WSJ Entertainment reporter, on Josh D’Amaro [11:44]

• The successor will shadow Iger for a period before full transition.

Notable Quotes & Memorable Moments

• “This is the first time we’ve seen OpenAI so forcefully sound the warning call around ChatGPT.”
  — Berber Jin [02:09]

• “By their own projections, they say they need to get $200 billion in revenue by 2030 in order to turn a profit.”
  — Berber Jin [04:51]

• “Both parties very much view this as a national proxy fight and see it as an attempt to gain voters ahead of the 2026 midterms.”
  — Anvi Bhutani [09:29]

• “He’s very charismatic, which is very important for any top executive at Disney because it’s such a public facing company.”
  — Ben Fritz [11:44]

Key Timestamps

• 01:18 – OpenAI “Code Red” announcement and context
• 02:09 – Rising competition from Google Gemini & Anthropic
• 03:26 – What ‘Code Red’ means internally; focus areas for ChatGPT
• 04:39 – Investor implications & revenue challenges
• 05:38 – Bitcoin selloff and market analysis
• 07:44 – Tennessee special election significance
• 09:37 – Trump admin launches “fake news” tracker site
• 10:03 – Netflix’s bid for Warner Bros. Discovery
• 11:38 – Inside Disney’s CEO succession race

Tone & Language:
Informative and brisk, matching The Wall Street Journal’s style; unsensational but clearly framing stakes in business, politics, and tech.

This summary captures the essence, urgency, and business impact discussed in the episode, along with relevant context for each story covered.