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What are GPTs Actually For? Unraveling the Purpose Behind the Hype

May 17, 2024

If you've been active on LinkedIn or any tech-focused social platform recently, the term "GPTs" has probably crossed your path. Hailed by OpenAI as a significant stride towards autonomous AI agents, GPTs (Generative Pre-trained Transformers) have generated a whirlwind of opinions and speculations. Tech enthusiasts predict a future where GPTs create millionaires, while some even view them as stepping stones towards Artificial General Intelligence (AGI). However, amidst this techno-optimism, there's an underlying critique of GPTs being flawed, security-compromised, and challenging to manage.

The Real Game: Market Capture and Monetization

Contrary to the expectations of creating sophisticated AI solutions, the primary aim of GPTs seems to be market capture. The strategy is to establish a dominant platform for future AI applications like chatbots, virtual agents, and assistants. This platform-centric approach is not just about technological advancement; it's a calculated move for market dominance in the AI app marketplace.

GPT Market Capture Strategy

Monetizing Through Subscriptions

An intriguing aspect of this strategy is the monetization model. GPTs are often subscription-based, meaning OpenAI profits from users who are essentially testing and refining their platform. This model turns standard development practices on their head – users pay to enhance and debug the system, creating a self-sustaining cycle of improvement and revenue.

Free Advertising and Data Accumulation

Beyond direct monetization, GPTs serve as a source of free advertising and data collection. The buzz created around their capabilities, even if overhyped, draws attention and users. This influx of users not only tests the system’s limits but also provides a wealth of data, invaluable for refining AI models.

GPTs are free advertising

The Glitches: A Necessary Evil?

Despite being laden with glitches and operational issues, these early versions of GPTs could be seen as necessary steps in the long-term strategy. By releasing imperfect products, OpenAI educates the market, acclimatizes users to AI interactions, and sets the stage for future, more polished offerings.

Energy and Resource Considerations

There's also an environmental angle to consider. GPTs, with their intensive energy and resource demands, pose significant environmental concerns. This factor raises questions about the ethical and sustainable development of AI technologies.

GPTs pose significant environmental concerns.

Conclusion: A Strategic Business Maneuver

In summary, while the technical prowess of GPTs might seem underwhelming, their strategic significance cannot be overstated. By capturing the AI app marketplace and establishing a dominant platform, OpenAI is positioning itself at the forefront of the AI revolution. The current flaws and operational challenges are merely stepping stones in a much larger, more complex game of technological and market dominance.

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