This is the correct answer. You don’t HAVE to open source it, but if you even email a copy of the code to one other person (outside your organization if your company owns the copyright) then the GPL applies.
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If you change code on a GPLv3 project you have to open source it under the GPLv3 period.
If that's true, have you ever wondered why AGPL exists? The only change is that it considers the use of the software over the network as distribution (such as an API or web interface).