Of AI products? By all available metrics, yes, sales for AI driven products are atrocious.
Even the biggest name in AI is desperately unprofitable. OpenAI has only succeeded in converting 3% of their free users to paid users. To put that on perspective, 40% of regular Spotify users are on premium plans.
And those paid plans don’t even cover what it costs to run the service for those users. Currently OpenAI are intending to double their subscription costs over the next five years, and that still won’t be enough to make their service profitable. And that’s assuming that they don’t lose subscribers over those increased costs. When their conversion rate at their current price is only 3%, there’s not exactly an obvious appetite to pay more for the same thing.
And that’s the headline name. The key driver of the industry. And the numbers are just as bad everywhere else you look, either terrible, or deliberately obfuscated (remember, these companies sank billions of capex into this; if sales were good they’d be talking very openly and clearly about just how good they are).
Of AI products? By all available metrics, yes, sales for AI driven products are atrocious.
Even the biggest name in AI is desperately unprofitable. OpenAI has only succeeded in converting 3% of their free users to paid users. To put that on perspective, 40% of regular Spotify users are on premium plans.
And those paid plans don’t even cover what it costs to run the service for those users. Currently OpenAI are intending to double their subscription costs over the next five years, and that still won’t be enough to make their service profitable. And that’s assuming that they don’t lose subscribers over those increased costs. When their conversion rate at their current price is only 3%, there’s not exactly an obvious appetite to pay more for the same thing.
And that’s the headline name. The key driver of the industry. And the numbers are just as bad everywhere else you look, either terrible, or deliberately obfuscated (remember, these companies sank billions of capex into this; if sales were good they’d be talking very openly and clearly about just how good they are).