Join 40,000 readers and get the full notes and summary: https://newsletter.aiwithkyle.com/subscribe Subscribe and turn on notifications to catch the next live stream: https://www.youtube.com/@iamkylebalmer?sub_confirmation=1 Want to know which AI business to start? Check out Freedom OS: https://aiwithkyle.com/join-freedom-os This video is from the ‘AI with Kyle News and Updates Live Stream’ First aired: 2 December 2025 Summary: OpenAI has apparently declared a code red, and honestly, it's not hard to see why. After years of essentially having the consumer AI space to themselves, they're now getting properly squeezed from both sides. On one flank, you've got Chinese models like DeepSeek V3.2 that are open source, competitive in performance, and 20 times cheaper on the API. On the other, Google's Gemini has suddenly become a legitimate contender. App downloads are surging, people are actually asking "should I use Gemini or ChatGPT?", which is a question nobody was entertaining even a month ago. The panic is real enough that they've apparently pushed back their controversial ads rollout, presumably because they know losing goodwill right now would be catastrophic. What's fascinating here is watching OpenAI transition from being synonymous with AI itself to just being one player among several. They've had a good run with essentially no serious competition for a couple of years, but that comfortable position is evaporating fast. The hype machine is already spinning up—OpenAI reps are on social media promising "something big"—so presumably we'll see them try to reassert dominance soon. Whether it's enough remains to be seen, but the era of smooth sailing is definitely over. Competition is good for all of us, of course, but it's certainly not pleasant if you're the one scrambling to maintain your lead. Watch full edited live stream: https://youtu.be/80sytIyY-Y0 —— More Useful Resources —— My other daily live show - 30-day building a business in public challenge: https://www.youtube.com/live/Z0Z_1Eg3HUk (day one) Ultimate AI Learning Resource List: https://www.aiwithkyle.com/resources/ai-learning-guide Free AI Entrepreneurship Playbooks: https://aiwithkyle.com/catalog Free Quiz: What AI business should you start? https://aiwithkyle.com/tools Free AI Training Business Planner: https://aiwithkyle.com/tools/workshop-builder Free AI Industry Translator Tool: https://aiwithkyle.com/tools/industry-ai-translator Free 10-Week ‘Vibe Coding’ AI Summer Camp: https://aiwithkyle.com/courses/10-week-ai-summer-camp —— Time Stamps —— 00:00 Chinese AI Could Collapse US Tech Investment 00:09 Welcome to AI with Kyle 01:02 DeepSeek V3.2 - China's Open Source Powerhouse 04:34 DeepSeek API Pricing - 20x Cheaper Than ChatGPT 06:47 Silicon Valley Is Quietly Switching to Chinese AI 08:23 Why Cheap Chinese AI Threatens American Tech 09:19 Q&A: Is DeepSeek Quality Good Enough? 11:34 Q&A: Will ChatGPT Catch Up to Google Images? 14:11 OpenAI Declares Code Red (Preview) 14:54 Q&A: GPT-4o Mini vs DeepSeek for SaaS 15:54 Q&A: Best AI for Deep Research - Claude Wins 17:52 Q&A: One Subscription? Get Perplexity Pro Free 20:18 Q&A: Should You Switch from ChatGPT to Gemini? 21:32 Why Claude Is My Daily Driver for AI 24:21 Q&A: Is ChatGPT Just Autocomplete? 25:30 Q&A: Is Running Local AI Models Worth It? 31:57 OpenAI Code Red - Sam Altman Hits Panic Button 33:41 Google's Secret Weapon Against ChatGPT Ads 35:03 Gemini App Downloads Surging vs ChatGPT 35:36 OpenAI Squeezed Between China and Google 37:32 Newsletter, Resources & Wrap-Up —— Contact —— Best is in YouTube comments. For business enquiries only: https://www.passionfroot.me/iamkylebalmer