OpenAI is reconsidering its no-ads stance for ChatGPT as CEO Nick Turley admits that even with 700 million active users, revenue from subscriptions alone is insufficient. The company expects $12.7 billion in revenue this year but is not cash-flow positive and anticipates losses until 2029. Currently, only 20 million users subscribe to the service, indicating less than 3% conversion from free to paid. OpenAI is exploring a new revenue model called 'Commerce in ChatGPT,' which involves earning a commission on product purchases made through the platform.
OpenAI is exploring a model called 'Commerce in ChatGPT,' where the company takes a cut from product purchases made through ChatGPT, rather than traditional display ads.
Nick Turley acknowledged that even with 700 million weekly active users, ChatGPT cannot generate sufficient revenue without ads, while OpenAI plans to be 'thoughtful and tasteful' in implementation.
Only 20 million out of 700 million weekly active users currently pay for ChatGPT subscriptions, indicating a significant challenge in converting free users into paying customers.
OpenAI is projected to earn $12.7 billion in 2024, but the company is not cash-flow positive and expects to be in the red until 2029.
Collection
[
|
...
]