Sam Altman isn't mincing words about the competition. The OpenAI CEO recently sat down with Alex Kantrowitz on the Big Technology Podcast and delivered a surprisingly candid assessment of where his company stands against the tech industry's behemoth: Google (GOOG).

A Close Call in 2023

"Google is still a huge threat...you know extremely powerful company," Altman said, before diving into what sounds like a near-miss moment for OpenAI. Looking back at 2023, when Google's AI efforts weren't firing on all cylinders due to questionable product direction, Altman admitted his company dodged a bullet.

If Google had decided to laser-focus on crushing OpenAI at that moment, things would have gotten ugly fast. "I think they would have just been able to smash us," the OpenAI CEO acknowledged. It's not every day you hear a tech leader admit their competitor could have wiped them out.

Altman pointed to Google's business model as one of the industry's strongest, suggesting the search giant will be reluctant to abandon what's worked so well for years. But here's where he sees an opening: he's skeptical that simply bolting AI onto existing systems like web search will cut it. In his view, Google needs a complete redesign with AI as the foundation, not just an add-on feature.

The Pressure Mounts

These comments come as the AI landscape shifts rapidly beneath everyone's feet. Earlier this month, OpenAI hit the panic button with a "Code Red" declaration, pausing its monetization plans to focus on improving product quality. That's the kind of move that signals genuine concern about staying competitive.

CNBC's Jim Cramer has been even more dramatic, predicting OpenAI's future could be in serious jeopardy following Google's latest AI breakthroughs. "It was only a matter of time before we heard from OpenAI about how it fell behind, and the rush of tens of millions of users right to Gemini 3 would be upon us," Cramer posted.

Meanwhile, reports suggest OpenAI has been exploring a potential $1 trillion IPO, with discussions underway for a $100 billion fundraise at a $750 billion valuation. Those are eye-watering numbers that reflect both the company's ambitions and the stakes involved in this AI arms race.

Price Action: Alphabet (GOOGL) stock has surged 59.34% year-to-date. On Thursday, shares rose 1.91% to close at $303.75.