Seems pretty obvious they decided to be a product maker. This is them doubling down.
They started out obviously doing API stuff. chatGPT was some sort of proof-of-concept or whatever but once it went viral, the obvious pivot is to be a product maker. The margins on ChatGPT+ is way better than an API, as every ChatGPT clone will tell you. A viral product is really hard to make, never mind make and throw away to focus on lower margin corporate customers.
They seem to have a great vision now - make a good product (WIP, but rapidly iterating), and sell the underlying models to Microsoft to offer as an API for the residual value they can’t capture directly. This should make it clear that if you’re selling a Chatbot off of their APIs, they’re planning to compete with you.
They started out obviously doing API stuff. chatGPT was some sort of proof-of-concept or whatever but once it went viral, the obvious pivot is to be a product maker. The margins on ChatGPT+ is way better than an API, as every ChatGPT clone will tell you. A viral product is really hard to make, never mind make and throw away to focus on lower margin corporate customers.
They seem to have a great vision now - make a good product (WIP, but rapidly iterating), and sell the underlying models to Microsoft to offer as an API for the residual value they can’t capture directly. This should make it clear that if you’re selling a Chatbot off of their APIs, they’re planning to compete with you.