ChatGPT - From Fun Free Tool To Microsoft's £10 Billion Bet To Premium Paid Service

By Owain Brennan

ChatGPT is a cutting-edge language generation tool that utilizes advanced deep learning techniques to generate text. Developed by OpenAI, it is based on the GPT-3.5 (Generative Pre-trained Transformer 3.5) model which has been trained on a massive amount of diverse text data. With this training, it is able to generate human-like text that is coherent and contextually appropriate.

It can be used to generate a wide range of text formats, including but not limited to blog posts, articles, social media posts, product descriptions, and even code! Additionally, it can be fine-tuned to generate text in specific styles, tone, and industry-specific language. 

The tool is user-friendly and can be integrated with various platforms and applications, making it an ideal choice for writers, content creators, and businesses. With ChatGPT, you can generate high-quality and unique text in a matter of seconds, saving you time and effort while still producing professional-grade content in a user firendly chat bot environment.

A man talking to a machine in a void landscape

One of the best things about ChatGPT is that it’s completely free to use. This means that anyone can access the tool and start generating text without having to spend any money. This makes it a great option for both hobbyists and professionals alike. Although with recent further interest from Microsoft OpenAI are changing the way users can interact with ChatGPT.  

According to sources familiar with the matter, Microsoft is in talks to invest $10 billion into OpenAI. The funding, which would also include other venture firms, would value OpenAI at $29 billion, including the new investment. The deal’s status is unclear, but recent documents sent to prospective investors suggest a targeted close by the start of 2023.

The proposed deal would involve Microsoft receiving 75% of OpenAI’s profits until it recoups its investment, after which it would revert to a structure reflecting ownership of OpenAI, with Microsoft holding a 49% stake, other investors taking another 49% and OpenAI’s non-profit parent holding 2%. Additionally, there is a profit cap that varies for each set of investors, which is unusual for venture deals. However, it should be noted that the terms and investment amount are still subject to change and the deal may not materialize.

OpenAI, the company behind the popular language generation tool ChatGPT, has recently introduced a new premium tier priced at $42 a month. This new premium offering includes a variety of benefits that are designed to enhance the user experience.

One of the key benefits of the premium tier is improved availability during high-demand periods. This addresses a common issue that many users have encountered when trying to access the service, where it becomes unavailable due to too many users accessing it at the same time.

Another benefit of the premium tier is faster response times when using the system. As ChatGPT has gained in popularity, some users have noticed a significant slowdown in response times. This premium tier aims to fix that problem, providing users with faster and more efficient access to the system.

The final advertised benefit of the premium tier is early access to new features. While it is currently unclear what these features will be, some recent examples include the ability to access past chats and the automatic naming of those chats. This new features are aimed at providing users with more usability and will be welcomed by users.

Overall, the new premium tier of ChatGPT is a great way for users to get even more out of the platform and offers a more streamlined and efficient experience.

ChatGPT Preium Pricing Package and Free Package

It’s no mystery why OpenAI has introduced a premium tier for ChatGPT. As the usage of the free service has increased, CEO Sam Altman has reported that it is costing the company an “eye-watering” amount of money, with each chat message incurring multiple expenses. This, in combination with the proposed $10 billion investment from Microsoft, made it clear that a new pricing model was necessary to recoup costs and turn ChatGPT into a profitable endeavor.

Making ChatGPT a profitable business with the new pricing tier should not be difficult. The service has already built up a user base of 1 million in just 3 days in December 2020, and since then it’s grown even more.

OpenAI also generates revenue from its API for GPT-3, the predecessor to the model that runs ChatGPT, which is heavily used in services such as Microsoft’s PowerBI and Grammarly.

ChatGPT Chat Box

In conclusion, ChatGPT has come a long way since its launch as a fun and free language tool. With its recent possible $10 billion investment from Microsoft and the introduction of a premium tier, it is clear that ChatGPT has huge potential as a profitable business. 

The premium tier offers users improved availability, faster response times and early access to new features, making it a valuable service for businesses and individuals alike. The investment from Microsoft highlights the significance of ChatGPT and the future potential of the technology.

OpenAI is known for its cutting-edge technology and with this significant investment, it’s likely that ChatGPT will continue to evolve and improve, making it an even more powerful tool for language generation. With its growing popularity and expanding capabilities, ChatGPT is definitely a service worth checking out.

If you would like to understand how AI tools like ChatGPT can be introduced to improve your product or organisation get in touch with our SeerBI Data Scientists today for a free Data Science Consultancy.

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