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ChatGPT: A Game-Changing Language Model

ChatGPT, the chatbot launched by OpenAI, has taken the world by storm. It achieved a record-breaking milestone by reaching 100 million active users within just two months of its launch, making it the fastest-growing app ever. This astonishing growth has sent shockwaves through various industries, prompting universities worldwide to scramble for ways to detect ChatGPT in submitted essays, and leading tech giants like Google and Meta to shift focus towards commercializing their own AI efforts.

OpenAI, the research laboratory behind ChatGPT, was founded by tech luminaries such as Elon Musk, Reid Hoffman, Peter Thiel, and Sam Altman. The chatbot has garnered significant media attention due to its broad range of capabilities, including answering questions, following up on secondary queries, assisting with coding, and even writing essays.

ChatGPT is built on top of OpenAI’s GPT⑶ large language model, which was considered one of the most advanced language models upon its release in 2023. It serves as the foundational model for all three of OpenAI’s consumer AI applications: ChatGPT, DALL-E, and Codex.

This third-generation model, launched in 2018, marked a significant leap in size and complexity from its predecessor. GPT⑶ boasts a staggering 175 billion parameters, making it a behemoth in comparison to the previous generation’s 1.5 billion. OpenAI plans to release a fourth-generation language model in 2023, which is expected to bring about a similar leap in scope and capabilities as the transition from GPT⑵ to GPT⑶.

The Role of ChatGPT and OpenAI’s Cautionary Stance

Despite its rapid success, ChatGPT is far from being a complete product. OpenAI’s CEO, Sam Altman, has emphasized on Twitter that the chatbot is “incredibly limited” and should not be relied upon for anything important. However, many users have found value in leveraging ChatGPT to automate tasks such as composing emails and essays. Some news outlets have even employed the tool to generate content (Business of Apps is not among them).

The demand for ChatGPT has surpassed OpenAI’s expectations, far exceeding the initially received response to DALL-E upon its public release. In order to monetize this high demand, OpenAI has introduced ChatGPT Plus, a subscription plan priced at $20 per month. This premium offering provides subscribers with uninterrupted access to ChatGPT, faster response times, and priority access to new features.

Running an AI model at the scale of ChatGPT comes at a significant cost. Estimates suggest that OpenAI spends around $3 million per month to maintain and operate the chatbot. To mitigate this expense, OpenAI has formed a strategic partnership with Microsoft, which not only invested over $10 billion in the company but also grants preferential rates or free access to Microsoft Azure’s cloud servers.

In return, Microsoft has integrated ChatGPT into various services, including Azure. The OpenAI service on Azure allows users to engage with ChatGPT, GPT⑶.5, DALL-E, and Codex. Microsoft has also introduced a new version of its Bing search engine that incorporates ChatGPT.

Microsoft’s motivation behind embedding ChatGPT into its services lies in the vision of transforming it into the future of search. While Microsoft, Amazon, Apple, and Google initially believed voice assistants would be the next evolution of search, these services have not gained the expected prominence since the mid⑵010s. Microsoft has largely phased out its own voice assistant, Cortana.

ChatGPT Insights

Record-Breaking User Growth

ChatGPT achieved an unprecedented milestone by becoming the fastest app to reach 100 million active users. It accomplished this feat within just two months, outpacing the previous record set by Google+ by nearly ten months.

Projected Revenue & OpenAI’s Valuation

OpenAI predicts that ChatGPT will generate $200 million in revenue for the year 2023 and a staggering $1 billion by 2024. This follows a reported revenue of less than $10 million in 2023. OpenAI’s meteoric rise is underscored by its recent funding round, led by Microsoft, which placed the company’s valuation at an impressive $29 billion.

Cost and Collaboration

Running a language model of ChatGPT’s magnitude incurs substantial expenses. Reports suggest that the monthly cost of keeping ChatGPT operational for OpenAI amounts to approximately $3 million.

In an effort to manage this expenditure, OpenAI formed a strategic alliance with Microsoft. Alongside the significant investment, Microsoft provides OpenAI with preferential rates or free access to its Azure cloud servers.

Unlocking the Full Potential of ChatGPT

As ChatGPT continues to captivate users worldwide, its remarkable growth is set to reshape industries and unlock new possibilities. OpenAI’s projections of skyrocketing revenues, paired with the company’s partnership with Microsoft, position ChatGPT as a key player in the future of language AI.

While ChatGPT is currently in its nascent stage and should not be solely relied upon for mission-critical purposes, its popularity underscores the demand for advanced language models. As OpenAI builds upon its success, users can look forward to witnessing even more groundbreaking innovations in the field of AI.

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