ChatGPT's revenue growth slows down as mobile app downloads grow
IANS
Synopsis
The revenue growth of OpenAI's ChatGPT has slowed down to 20% in September, compared to the previous months where it was in the 30s, according to market intelligence firm Appfigures. Despite this, the growth is still considered impressive. The ChatGPT+ subscription service, priced at $19.99 per month, contributed to the estimated $3.2 million revenue earned by ChatGPT in September.
By IANS
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According to data from market intelligence firm Appfigures, ChatGPT was witnessing more than 30 per cent revenue growth in the last couple of months but now, the rate at which revenue grew is actually the lowest to date at just 20 per cent (as of September).
The upgraded ChatGPT+ subscription service costs $19.99 per month that offers faster response times, priority access at peak times and early access to new features and improvements.
"Our estimates show ChatGPT earned $3.2 million in September from the App Store and Google Play. That is net which means what OpenAI gets to keep after Apple and Google take their fees," Appfigures said in its report.
Around 15.6 million people downloaded OpenAI's ChatGPT app in September.
The official ChatGPT app from OpenAI has been on the App Store since May and Google Play since July.
The report said that with a few small tweaks, OpenAI can easily increase that conversion rate and see much faster revenue growth.
Last month, OpenAI said it expected to reach $1 billion in revenue in 2023.
The cost of running ChatGPT is prohibitively high for the company. According to an analysis from Bernstein analyst Stacy Rasgon, each enquiry costs about 4 US cents.
If ChatGPT queries grew to a tenth the size of Google searches, it would require about $48.1 billion in GPUs initially and around $16 billion in chips per year to remain functioning.
Sam Altman-run OpenAI is also reportedly raising funds at a valuation of $80-$90 billion via sale of existing shares.
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Although 20 per cent growth is still "amazing especially when we're looking at millions, it's lower than the previous months which were in the 30s," the report noted.Elevate Your Tech Prowess with High-Value Skill Courses
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"Our estimates show ChatGPT earned $3.2 million in September from the App Store and Google Play. That is net which means what OpenAI gets to keep after Apple and Google take their fees," Appfigures said in its report.
Around 15.6 million people downloaded OpenAI's ChatGPT app in September.
The official ChatGPT app from OpenAI has been on the App Store since May and Google Play since July.
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The report said that with a few small tweaks, OpenAI can easily increase that conversion rate and see much faster revenue growth.
Last month, OpenAI said it expected to reach $1 billion in revenue in 2023.
ADVERTISEMENT
The cost of running ChatGPT is prohibitively high for the company. According to an analysis from Bernstein analyst Stacy Rasgon, each enquiry costs about 4 US cents.
If ChatGPT queries grew to a tenth the size of Google searches, it would require about $48.1 billion in GPUs initially and around $16 billion in chips per year to remain functioning.
ADVERTISEMENT
Sam Altman-run OpenAI is also reportedly raising funds at a valuation of $80-$90 billion via sale of existing shares.
