OpenAI achieved $3.4 billion in revenue just 18 months after launching ChatGPT. While this figure is impressive, it remains small compared to the overall potential market for artificial intelligence. Currently, the business model of a company like OpenAI, and that of its direct competitors (such as Anthropic and Mistral), is not sustainable. Indeed, OpenAI would not have achieved $3.4 billion without the $10 billion from Microsoft, which covered the significant cloud expenses required by a product like ChatGPT. Even without detailed figures on the cost of an active ChatGPT user, it is clear that for this type of product, the ratio between paying and free subscribers is crucial. So why the deal with Apple? There’s a reason: Apple has primarily become an app distributor, especially for paid apps. With over 1.3 billion active Apple product users worldwide, OpenAI’s sole objective with this deal is to increase its number of paying users and therefore its revenue. There's also an economic reality to consider about Apple that all developers creating apps for both Apple and Android know: Apple users are fewer but more willing to pay for apps, while Android users are accustomed to paying less and seeing more ads. This makes sense because advertising is Google’s business model. Apple accepts this deal because it has always fostered partnerships with app developers and takes a commission on In-App purchases. Additionally, it adds value to its own products. You might be more inclined to buy an iPhone for smoother ChatGPT integration if you use it regularly. Ultimately, the Microsoft/OpenAI deal is similar but focused on B2B. The market trend is clear: the use of AI in business and daily life is rapidly increasing and will continue to grow. For companies like Apple and Microsoft, the goal is not to release revolutionary new products but to continuously adapt their products to market trends. It's not about being first in the race but being the best. This includes acquiring or partnering with startups that aim to be innovative and in the leading position. For OpenAI, distributing through a market of buyers likely to become paying subscribers is the best approach to making ChatGPT viable because it will improve the ratio of paying to free subscribers.
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Sabtu, 22 Juni 2024
OpenAI's Impressive Revenue Revealed and Why ChatGPT Is Not Economically Viable
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