In the dynamic world of digital innovation, where competition thrives, the initial fervor surrounding ChatGPT, the chatbot developed by OpenAI, appears to be waning. Recent data reveals a decline in web traffic as desktop and mobile visitors to the platform dropped. Meanwhile, as ChatGPT faces challenges, a promising Twitter rival called Bluesky is enjoying a surge in popularity, fueled by recent limitations on Twitter and the allure of decentralization. Whether OpenAI management is broken-hearted about the dip in traffic is debatable; diversification is the prime interest.
Bluesky, the promising Twitter rival, gains traction amidst Elon Musk’s Twitter limitations
While ChatGPT and OpenAI face declining interest, a rival to Twitter called Bluesky is gaining popularity. This surge in attention follows Elon Musk’s announcement that Twitter will temporarily limit the number of posts users can read per day. Bluesky, an invite-only decentralized social site backed by Twitter’s original founder Jack Dorsey, reported record-high traffic in response to Musk’s announcement.
Bluesky, founded in 2019, operates on the AT Protocol, a decentralized networking technology that enables users to maintain their identities across multiple platforms. Although the site currently has only around 50,000 users, its recent increase in traffic suggests growing interest in the platform.
Bluesky’s business is divided into two parts: Bluesky, responsible for developing and enhancing the AT Protocol, and Bluesky PBLLC (Public Benefit Limited Liability Company), the business arm. Funding for Bluesky is provided by Bluesky PBLLC, which operates as a for-profit entity but is shielded from shareholder actions regarding a lack of profits due to its PBLLC designation. This status allows the company to prioritize its mission over monetary gains.
Declining interest in ChatGPT raises questions for OpenAI
Following an explosive start to the year, the world’s fascination with ChatGPT, the chatbot developed by OpenAI, appears to be fading. Recent data indicate a decline in both desktop and mobile web traffic, with a decrease of 9.7% from May to June. Also, the number of unique visitors to the site dropped by 5.7%, and overall time spent on the platform decreased by 8.5%.
This cooling of interest might not be cause for alarm for OpenAI. David F. Carr, senior insights manager at Similarweb, suggests that OpenAI may not be overly concerned about the dip in traffic. The ChatGPT website, which was initially introduced as a technological demo, is largely used by OpenAI, which focuses on integrating its technology into third-party apps, to generate sales leads. As a result, the overarching strategy of OpenAI may not be severely impacted by the website’s reduction in traffic.
In fact, the company’s developer website, platform.openai.com, experienced a 3.1% increase in traffic from May to June. This section of the site serves as the entry point to OpenAI’s main revenue-generating arm. The cost of operating the mostly free ChatGPT service has been described as “eye-watering,” estimated at around US$700,000 per day. OpenAI’s focus on attracting developers and potential business partners through its developer website aligns with its long-term objectives.
Diversifying options for users seeking Twitter alternatives
The release of ChatGPT initially stirred controversy in the advertising industry. Ad agencies and brands had mixed reactions, with some embracing the tool’s potential and others dismissing it as a flawed gimmick. M&C Saatchi’s Re-Design even organized an event in Sydney where generative AI tools, including ChatGPT, competed against human creatives. The human teams were ultimately deemed victorious, providing a sense of relief to those in attendance.
Presently, Bluesky has received $13 million in funding from Jack Dorsey, who also serves on the company’s board. Jeromy Johnson, a technical adviser to Bluesky, stated that the company is open to advertising but not solely reliant on it.
On Sunday, the platform posted: Sign ups are currently disabled as is the ‘Popular with Friends’ feed. Otherwise, the service should be operating correctly. The founder’s clarification came as millions of users across the globe, including in India, slammed him as the micro-blogging platform suffered a major outage globally.
Although Bluesky is experiencing increased public interest and attracting attention as a Twitter alternative, it might be premature to consider advertising opportunities on the platform. Also, other Twitter alternatives, such as Instagram’s text-only rival, Threads, are also emerging, further diversifying the options for users seeking alternatives to Twitter.
