OpenAI’s ChatGPT, an AI-powered chatbot, is experiencing a slowdown in its revenue growth, raising concerns about market saturation. Recent data from market intelligence firm Appfigures shows that while ChatGPT saw over 30% revenue growth in previous months, the growth rate has now dropped to just 20%, the lowest to date as of September.
Although a 20% growth rate is still impressive, especially considering the large user base, it is lower compared to previous months. The upgraded ChatGPT+ subscription service, priced at $19.99 per month, offers features such as faster response times, priority access during peak times, and early access to new improvements.
According to Appfigures, ChatGPT earned approximately $3.2 million in September from the App Store and Google Play, after deducting fees charged by Apple and Google. This impressive revenue figure is coupled with a significant user base, as around 15.6 million individuals downloaded the ChatGPT app in September.
The official app for ChatGPT has been available on the App Store since May and Google Play since July, attracting a substantial number of users. However, the report suggests that OpenAI can further increase its conversion rate and achieve faster revenue growth through a few small adjustments.
OpenAI expects to reach $1 billion in revenue by 2023. Nevertheless, the cost of running ChatGPT remains a challenge for the company. According to an analysis by Bernstein analyst Stacy Rasgon, each inquiry on ChatGPT costs approximately 4 US cents. If the volume of ChatGPT queries were to grow to a fraction of Google searches, the company would require billions of dollars initially and billions more in annual expenses to sustain the service.
OpenAI, led by Sam Altman, is reportedly seeking to raise funds through the sale of existing shares, aiming for a valuation between $80 billion and $90 billion.
As ChatGPT faces a potential slowdown in revenue growth, OpenAI has an opportunity to address the issue and make adjustments that can lead to increased revenue. With a large user base and a market hungry for AI-powered chatbots, OpenAI has significant potential for growth in the coming years. However, the challenge lies in managing the high costs associated with maintaining and scaling ChatGPT to meet the demands of millions of users worldwide.
In conclusion, while the revenue growth of OpenAI’s ChatGPT has slowed down, it still remains an impressive achievement. With a strong user base and potential for expansion, OpenAI has the opportunity to address the saturation concerns and continue its growth trajectory. By making necessary tweaks and optimizations, OpenAI can further increase revenue and solidify its position in the AI chatbot market.
