ChatGPT continues to lose users, and this is really bad timing for OpenAI

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Also read: Goblins and gremlins invade ChatGPT – OpenAI points a finger at a culprit

ChatGPT is in the red, but Claude is booming

Even more concerning, the number of ChatGPT app uninstallations continues to rise, even after the controversy sparked by the agreement with the Pentagon. ChatGPT uninstallations have skyrocketed by 132% in April compared to the previous year. A month after the uninstallation surge, many users continue to say goodbye, or at least farewell, to OpenAI's chatbot, despite the recent announced updates.

While ChatGPT seems to be exhausted, the competition is experiencing massive success. The spectacular growth of OpenAI's AI is now showing serious signs of exhaustion.

Also read: OpenAI launches a new plan, here's what ChatGPT Pro offers

Bad timing

The users' disaffection towards ChatGPT arrives at the worst time for OpenAI. Sam Altman's startup is indeed preparing for an IPO scheduled for the end of the year, and investors are scrutinizing the company's health closely. For now, the picture isn't bright. OpenAI has missed its internal targets, both in terms of user numbers and financial revenue. If revenues don't take off quickly enough, the company might not be able to finance the servers and infrastructure needed to run the AI, the CFO Sarah Friar warned internally. Without rapid growth, OpenAI could lack funds to operate its own tools.

The warning comes as OpenAI has just freed itself from Microsoft. The two giants have completely revised the terms of their partnership. Now, Microsoft will no longer pay a portion of its revenues to OpenAI based on profits generated through its AI technology. The startup must therefore cut off a revenue source, although it gains the possibility to collaborate with a wide range of cloud giants.

To address these financial challenges, OpenAI is exploring multiple avenues. The company would notably consider introducing advertising in ChatGPT, launching a $8 monthly subscription worldwide, and increasing its presence within companies, one of the preferred markets of its rival Anthropic.

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