OpenAI plans to nearly double its workforce to 8,000 employees by year-end, accelerating its business push amid a competitive AI market. The $730 billion startup is hiring across product development, engineering, research, and sales as it seeks to gain ground on rival Anthropic. OpenAI has also leased additional San Francisco office space, expanding its footprint to over 1 million square feet.

Business customers are choosing Anthropic at three times the rate of OpenAI, prompting a strategic overhaul at the AI group. CEO Sam Altman issued a "code red" command to refocus on core products like ChatGPT, with executives urging staff to abandon "side quests" and concentrate on improving coding models and business applications.

OpenAI anticipates business customers will generate half of its revenue by year-end, up from 40% today. The company is bundling products into a single desktop app for both consumers and businesses while exploring joint ventures with private equity firms. Despite being lossmaking, both OpenAI and Anthropic prepare for potential public listings as they race to monetize their technologies.