ChatGPT's Traffic Has Seen a Decline For the First Time Since its Launch
According to the latest data from the analytics company Similarweb, there was a decrease in traffic to the ChatGPT website in June. The number of unique visitors to the service also decreased. This is the first time such a decline has been observed since its launch in November of last year. After a period of rapid growth, the traffic and user engagement with ChatGPT started slowing down in May.
According to Similarweb, global traffic to ChatGPT decreased by 9.7% in June 2023 compared to May. The number of unique visitors decreased by 5.7%, and the average time spent by users on the website in May decreased by 8.5%.
A similar trend is also observed in the Character.AI service, which was founded by former Google engineers in June 2022. Engagement with this service decreased by 32% in June compared to the previous month, although the traffic still significantly exceeds the initial levels.
Despite the negative data regarding the decline in traffic, OpenAI emphasizes that the ChatGPT website, launched as a technological demonstration, primarily serves as a prototype for potential clients. The visitation to the separate corporate platform of ChatGPT continues to grow and did not decrease in June.
Overall, the decrease in interest not only in ChatGPT but also in its key competitor indicates that AI-powered chatbots may be reaching the limit of the wow effect.
According to independent estimates, the operation of ChatGPT costs OpenAI about $700,000. Microsoft is their main sponsor. The primary direct revenue for ChatGPT comes from subscriptions sold to those who want access to the latest and best version of the product. Subscribers gain access to GPT-4, while free users work with older versions.
The sustainability of such a business model is questionable considering that people can obtain GPT-4 for free as part of Bing. What's more important, OpenAI provides other tech companies and corporate enterprises with access through an API to customizable versions of the software. From May to June, the visitation to the developer's website platform.openai.com increased by 3.1%.