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OpenAI has declared a 'code red' to improve ChatGPT's quality and reliability amid increasing competition, pausing side projects as tech giants invest over $400 billion in AI infrastructure. Concurrently, DeepSeek has introduced advanced reasoning models, and Anthropic's valuation has soared to nearly $350 billion following a $15 billion investment from Microsoft and Nvidia. This evolving landscape raises concerns about governance and potential conflicts of interest as the AI sector becomes a critical economic infrastructure.