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Despite increased mobile app downloads, ChatGPT experiences slower revenue growth

OpenAI has set ambitious revenue targets, aiming to achieve $1 billion in revenue by 2023. Despite this goal, the cost of operating ChatGPT is substantial, with each query costing approximately 4 US cents, as per an analysis by Bernstein analyst Stacy Rasgon.

Edited By: Saumya Nigam @snigam04 New Delhi Published on: October 10, 2023 10:24 IST
chatgpt, tech news, india tv tech
Image Source : FILE ChatGPT faces sluggish revenue growth amidst surging mobile app popularity

OpenAI's ChatGPT, an AI chatbot, has experienced a slowdown in its revenue growth, indicating that it may be nearing market saturation for its paid services. Recent data from market intelligence firm Appfigures shows that while ChatGPT was achieving over 30% revenue growth in the past few months, it has now slowed to 20% as of September.

Despite the slowdown, a 20% growth rate is still considered impressive, especially given the large user base. In September, ChatGPT earned an estimated $3.2 million from the App Store and Google Play combined, after deducting fees taken by Apple and Google.

Around 15.6 million users downloaded the ChatGPT app from OpenAI in September. The app has been available on the App Store since May and on Google Play since July.

ChatGPT offers a subscription service called ChatGPT+ for $19.99 per month, providing benefits like faster response times, priority access during peak hours, and early access to new features and improvements.

OpenAI has ambitious revenue goals, with a recent announcement stating its expectation to reach $1 billion in revenue in 2023. However, the cost of running ChatGPT is substantial, with each query costing around 4 US cents, according to an analysis by Bernstein analyst Stacy Rasgon. To handle ChatGPT queries at a scale even a fraction of Google searches, it would require a significant investment in GPUs and chips.

To address the slowdown in revenue growth, the report suggests that OpenAI could make small adjustments to improve its conversion rate and boost revenue more rapidly.

Additionally, OpenAI is reportedly in the process of raising funds through the sale of existing shares, aiming for a valuation in the range of $80 to $90 billion. The company is exploring various avenues to support its ambitious growth plans and the development of advanced AI technologies.

In summary, while ChatGPT has achieved remarkable growth, its revenue growth has slowed, signalling potential market saturation. OpenAI continues to seek ways to drive growth and achieve its revenue targets amid the high operational costs of running AI services.

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Inputs from IANS

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