Can OpenAI Respond After Google Closes the A.I. Technology Gap?
By Cade Metz and Mike Isaac — Reporting from San Francisco, December 11, 2025
Just before Thanksgiving 2025, Google announced that its latest artificial intelligence model, Gemini 3, had surpassed the capabilities of rival OpenAI, claiming the title of the world’s best AI system. This announcement marked a significant milestone in the rapidly evolving AI industry and intensified the ongoing competition between the two technology giants.
In response, less than a month later, OpenAI unveiled its newest model, GPT-5.2, asserting that it is "the best model yet for real-world, professional use." According to OpenAI’s blog post, GPT-5.2 outperformed several industry-standard benchmarks across categories such as computer programming, mathematics, and science. However, industry experts suggest that this exchange highlights a broader reality—the technical advantage once held by OpenAI has essentially evaporated, as Google and other competitors in the U.S. and China have closed the gap.
For much of the AI boom, initiated by OpenAI’s release of ChatGPT in late 2022, the San Francisco-based startup maintained a clear lead over its competitors. But over the past year, other companies have caught up or exceeded OpenAI’s capabilities. Rayan Krishnan, chief executive of Vals AI, which monitors AI advancements, remarked, “The overall shape and form of what it takes to build foundational models is well understood — and is happening roughly the same way inside every major AI lab.”
The tightening race comes at a challenging time for OpenAI. CEO Sam Altman projects that by the end of 2025, OpenAI will reach a monthly revenue run rate that equates to $20 billion annually. Nevertheless, the company is still far from turning a profit. Over the next several years, OpenAI plans to invest an estimated $1.4 trillion in the computing power required to develop and scale its diverse AI technologies—a colossal expenditure reflecting the demands of cutting-edge AI research and deployment.
This grueling competition and monumental investment underscore a key question facing OpenAI: Can it continue to innovate swiftly enough to maintain a leading position in an industry where the technology race is more intense and leveled than ever before? As the technological divide narrows, the dynamics of AI development are shifting toward sustained, high-stakes rivalry among major players globally.
The evolution of foundational AI models now involves robust development across multiple labs worldwide, setting a new standard in the AI landscape. The coming years will test not only the technological prowess of companies like OpenAI and Google but also their strategic and financial resilience as they navigate this demanding terrain.
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