Goldman Discloses Surprising Drop in Visits to Chat-GPT Website
OpenAI's ChatGPT has been a front-runner in the generative AI chatbot domain. However, the initial enthusiasm that lasted for over a year seems to be waning rapidly, as indicated by the recent monthly website traffic data.
According to new data from Peter Oppenheimer of Goldman, which cites analytics firm Similarweb, the total number of monthly visits to the ChatGPT website has seen a steep decline from spring to mid-summer. This was reported in a note to clients on Thursday.
More Insights from Oppenheimer
Oppenheimer further stated, "The initial 'excitement' about chat-GPT is diminishing in terms of monthly users. This doesn't imply that the growth rates in the industry will not be robust, but it does suggest that the next wave of beneficiaries may come from the new products and services that can be created on the back of these foundational models."
The sharp drop in monthly visits doesn't signify the end of OpenAI. Rather, it suggests that customers are either bored with GPT-4 or have shifted to other large language models powered by big tech, such as xAI's Grok. Some users might have found no necessity to incorporate chatbots into their daily routines.
As OpenAI's large language models (LLMs) become more sophisticated, ChatGPT will also enhance, enabling the startup led by Sam Altman to introduce new premium chatbots where it can charge white-collar workers well above the $20 a month (the current rate for GPT-4).
New Pricing Models Discussed
On Thursday, The Information reported that OpenAI executives have been considering new pricing models that could cost as much as $2,000 per month for upcoming advanced LLMs, such as a new reasoning-focused LLM named "Strawberry" and a new flagship LLM called "Orion."
Those with direct knowledge of OpenAI's proposed subscription price, which could soon cost some users $2,000 a month for premium LLMs, stated that nothing is final yet, indicating there are 'strong doubts the final price would be that high.'
The Information highlighted, "It's a significant detail because it suggests that the paid version of ChatGPT, which was recently on track to generate $2 billion in revenue annually, mostly from $20-per-month subscriptions, may not be growing quickly enough to offset the hefty costs of running the service. Those costs include the expenses of a free tier used by hundreds of millions of people per month."
Goldman's Jacob Malmstrom's Comments
On Friday, Goldman's Jacob Malmstrom commented on Oppenheimer's note to clients. He noted that a lot has happened in the markets since 2010, with the technology sector generating 32% of the Global Equity return and 40% of the US equity market returns. He also mentioned that when new technologies emerge, it's associated with enthusiasm and rising stock prices, which can lead to bubbles. He argued that tech is likely to continue to dominate returns, but concentration risk is high and investors should diversify their portfolios.
Investment Plans for OpenAI
In the meantime, venture capital firm Thrive Capital and several big tech companies, such as Apple and Nvidia, are planning to invest in OpenAI at (or around) a $100 billion valuation.
Bottom Line
The decrease in visits to the Chat-GPT website is a surprising development, suggesting a decrease in interest in this AI chatbot. However, it does not necessarily spell the end for OpenAI. With plans for new premium chatbots and potential investments from big tech companies, the future of OpenAI remains intriguing. What are your thoughts on this development? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
Goldman Discloses Surprising Drop in Visits to Chat-GPT Website
OpenAI's ChatGPT has been a front-runner in the generative AI chatbot domain. However, the initial enthusiasm that lasted for over a year seems to be waning rapidly, as indicated by the recent monthly website traffic data.
According to new data from Peter Oppenheimer of Goldman, which cites analytics firm Similarweb, the total number of monthly visits to the ChatGPT website has seen a steep decline from spring to mid-summer. This was reported in a note to clients on Thursday.
More Insights from Oppenheimer
Oppenheimer further stated, "The initial 'excitement' about chat-GPT is diminishing in terms of monthly users. This doesn't imply that the growth rates in the industry will not be robust, but it does suggest that the next wave of beneficiaries may come from the new products and services that can be created on the back of these foundational models."
The sharp drop in monthly visits doesn't signify the end of OpenAI. Rather, it suggests that customers are either bored with GPT-4 or have shifted to other large language models powered by big tech, such as xAI's Grok. Some users might have found no necessity to incorporate chatbots into their daily routines.
As OpenAI's large language models (LLMs) become more sophisticated, ChatGPT will also enhance, enabling the startup led by Sam Altman to introduce new premium chatbots where it can charge white-collar workers well above the $20 a month (the current rate for GPT-4).
New Pricing Models Discussed
On Thursday, The Information reported that OpenAI executives have been considering new pricing models that could cost as much as $2,000 per month for upcoming advanced LLMs, such as a new reasoning-focused LLM named "Strawberry" and a new flagship LLM called "Orion."
Those with direct knowledge of OpenAI's proposed subscription price, which could soon cost some users $2,000 a month for premium LLMs, stated that nothing is final yet, indicating there are 'strong doubts the final price would be that high.'
The Information highlighted, "It's a significant detail because it suggests that the paid version of ChatGPT, which was recently on track to generate $2 billion in revenue annually, mostly from $20-per-month subscriptions, may not be growing quickly enough to offset the hefty costs of running the service. Those costs include the expenses of a free tier used by hundreds of millions of people per month."
Goldman's Jacob Malmstrom's Comments
On Friday, Goldman's Jacob Malmstrom commented on Oppenheimer's note to clients. He noted that a lot has happened in the markets since 2010, with the technology sector generating 32% of the Global Equity return and 40% of the US equity market returns. He also mentioned that when new technologies emerge, it's associated with enthusiasm and rising stock prices, which can lead to bubbles. He argued that tech is likely to continue to dominate returns, but concentration risk is high and investors should diversify their portfolios.
Investment Plans for OpenAI
In the meantime, venture capital firm Thrive Capital and several big tech companies, such as Apple and Nvidia, are planning to invest in OpenAI at (or around) a $100 billion valuation.
Bottom Line
The decrease in visits to the Chat-GPT website is a surprising development, suggesting a decrease in interest in this AI chatbot. However, it does not necessarily spell the end for OpenAI. With plans for new premium chatbots and potential investments from big tech companies, the future of OpenAI remains intriguing. What are your thoughts on this development? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
