ChatGPT experiences a modest decline of approximately 10% in traffic as its initial novelty subsides

In June, global traffic experienced a decline of 9.7%, accompanied by a 5.7% decrease in unique visitors.

ChatGPT's growth no longer suggests a path towards becoming the most visited website worldwide. Put simply, the OpenAI tech demo site, which achieved remarkable cultural significance, does not pose a risk of surpassing Google in terms of web traffic.

As mentioned in our previous update, ChatGPT's remarkable surge in traffic growth has now reached a point of stabilization, with the current month recording the first decline.

Key Observations

• Preliminary estimates indicate a decline of 9.7% in worldwide desktop and mobile web traffic to the ChatGPT website, chat.openai.com, from May to June. In the United States, the month-over-month decrease was recorded at 10.3%.
• The worldwide unique visitor count for ChatGPT's website witnessed a decrease of 5.7%. Concurrently, there was an 8.5% decline in the average duration of time spent by visitors on the site.
• ChatGPT maintains its position as a more popular destination for global visitors compared to bing.com, Microsoft's search engine, and Character.AI, the second most widely used independent AI chatbot site. Although Character.AI witnessed a 32% decrease in worldwide visits from the previous month, it is noteworthy that its current traffic levels reflect a substantial increase since June 2022, when the company, founded by ex-Google engineers, commenced its operations.

ChatGPT's Phenomenal Surge Levels Off

The robust growth trajectory of ChatGPT came to a halt in June, as the platform observed a discernible decline in both traffic and engagement.

While Chat GPT's worldwide growth garnered significant attention, it's important to note that its expansion within the US market was relatively moderate. However, in June, a decline in traffic within the country was evident.

ChatGPT and Character.AI

Character.AI, an AI chatbot site renowned for its imaginative approach of assigning chatbots the personas of celebrities, historical figures, and fictional entities, witnessed a swift rise in popularity in recent months, largely attributed to the heightened interest in AI chatbots following the widespread recognition of ChatGPT. However, the website experienced a decrease in traffic volume during the month of June.

Time Spent on the Decline

Measuring visitor engagement in terms of the average duration of minutes per visit, ChatGPT is observing a drop in user interaction. While the exact data for June is not yet accessible, the metric had already declined by 8.5% in May.

How does this impact OpenAI's future trajectory?

The sentiments of OpenAI's management regarding the decline in traffic are subject to debate. Originally introduced as a technology demonstration, the ChatGPT website predominantly functions as a loss leader, aimed at generating sales leads for OpenAI. The company offers its technology for integration into third-party applications.

At the same time, the CEO of OpenAI has acknowledged the considerable expenditure required to sustain the predominantly no-cost service, describing it as 'staggering.' External evaluations have approximated the daily cost to be in the vicinity of $700,000.

As a key supporter, Microsoft has integrated OpenAI's GPT-4 algorithm into the chat service provided through the Bing search engine. While Bing operates as a mass-market, ad-supported platform, OpenAI's primary focus is not oriented toward running a similar website. The principal revenue stream for ChatGPT stems from subscriptions sold to users desiring access to the cutting-edge version, such as GPT-4, whereas free users are restricted to an earlier edition. The long-term sustainability of this business model remains uncertain, given that individuals can access GPT-4 at no cost as part of the Bing experience.

Furthermore, OpenAI facilitates API integration, enabling technology companies and corporate enterprises to leverage more adaptable versions of its software. Notably, the developer's website, platform.openai.com, observed a 3.1% upturn in traffic between May and June.

Still, the decline in interest, not only for ChatGPT but also for a key competitor, signals the fading novelty surrounding AI chat. Moving forward, chatbots will need to substantiate their value rather than relying on inherent intrigue.

Important disclosure: The names, brands, trademarks, and registered trademarks mentioned here are the exclusive property of their respective owners.

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