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An Analysis and Projection of AI in Education
OpenAI Business Model Canvas
Below is a business model canvas that outlines key components of OpenAI's business operations, specifically as they relate to their generative pre-trained transformer model chatbot, ChatGPT. Click on each icon or title to view the expanded section.
OpenAI was founded in 2015 by prominent tech figures Sam Altman, Elon Musk, Greg Brockman, Wojciech Zaremba, Ilya Sutskever, and John Schulman with a mission to transparently develop AI that empowers humanity (OpenAI, 2023). They pledged $1 million to the nonprofit and have since raised $11.3 billion in multiple funding rounds (Taskade, 2023).
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In 2018, they released a research paper entitled "Improving Language Understanding by Generative Pre-training" which introduced the concept of the generative pre-trained transformer (GPT) model for natural language processing (Radford et al., 2018). They have developed multiple advanced applications under this model, like DALL-E, ChatGPT-3 and 4, and Codex (OpenAI, 2023).
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Their mission is "to ensure artificial general intelligence—AI systems that are generally smarter than humans—benefits all of humanity" (OpenAI, 2023).
Customer Segment
Source: Wix Images
OpenAI's customer segment is diverse and far-reaching. They cater to a variety of customers, as their applications are incredibly versatile and personalized to the user.
Individuals use ChatGPT and DALL-E for their own personal use in everyday life. Some examples are freelance work, school work, professional work and recreation.
Businesses integrate the chatbot model into their systems in order to enhance customer service, automate marketing and advertising content, streamline internal communication, and optimize organizational operations.
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Developers use GPT's API to build third party applications that use the generative pre-trained transformer model to produce state-of-the-art generative AI for a variety of purposes.
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Online content creators and other marketing and social media professionals are a large customer base, as their work requires rapid, continuous content creation. ChatGPT can assist with generating ideas for content and creating copy.
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Researchers, educators, and students are also a large customer base; they use ChatGPT to help conduct research and facilitate teaching and learning by generating, summarizing, and synthesizing information.
Value Proposition
Source: Wix Images
OpenAI's publicly accessible applications offer high quality, efficient, and effective text and image generation. Their platforms are able to handle a high volume of varying user requests and process large amounts of text in a matter of seconds both from the user input and the machine output.
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ChatGPT's API, which is being used across a variety of applications currently, allows app developers to customize the language model to adjust to their specific needs and requirements for the purpose of their app (OpenAI, 2023).
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Additionally, OpenAI conducts ongoing research into the development and ethical dissemination of artificial intelligence. As a result, they are continuously developing their models, as well as creating an ethos of transparency with the public. Their ethics-centered approach helps to ensure that any developments they make are for the public good and address societal concerns and implicit biases.
Channels
Source: OpenAI
OpenAI has applications, ChatGPT and DALL-E, that can be used for free or with a premium subscription to access the more advanced models. ChatGPT Plus, the subscription version of ChatGPT, is $20/month and gives you access to ChatGPT during peak times (when the standard version may be inaccessible), faster response times, and access to the most updated GPT versions (OpenAI, 2023). DALL-E can be used by purchasing credits, typically in groups of 115 credits/$15 (OpenAI, 2023). Codex
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Another channel is their API, as developers can pay to integrate ChatGPT into their own applications, services, and other online tools. This has become a common channel as applications are rushing to remain relevant and competitive with other apps that are using AI chatbots.
Customer Relationships
Source: OpenAI
OpenAI interacts with its customers by posting its research online and creating feedback and discussion forums, offering technical support for its applications and free online resources for effectively utilizing its applications (OpenAI, 2023). Their website includes customer stories that use real anecdotes to detail how companies are using the GPT model to advance their goals and achieve results. Some examples include Morgan Stanley, Duolingo, and the Government of Iceland (OpenAI, 2023).
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Their website is also easy to navigate, and both ChatGPT and DALL-E have FAQ pages with short answers and more extensive articles.
Revenue Streams
Source: Wix Images
OpenAI has multiple revenue streams. A main revenue stream is their subscription service for ChatGPT, and their credits for DALL-E. Currently, ChatGPT Plus is $20/month, and DALL-E credits can be purchased for $15/115 credits (OpenAI, 2023). There are currently 100 million ChatGPT users, but it is unclear how many of them are subscribed to ChatGPT Plus. There are over 1.5 million active DALL-E users who are creating roughly 2 million images a day (OpenAI, 2023)
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OpenAI also has enterprise contracts that are used by companies to enter into a long-term relationship with OpenAI that includes dedicated support and customized solutions.
Cost Structure
Source: Wix Images
A key cost for OpenAI is their research and development (Business Model Analyst, n.d.). They are conducting continuous research into ethical generative AI, biases, societal reception and adoption, and future implications. OpenAI also has to maintain their state-of-the-art infrastructure and data servers that run their GPT applications.
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OpenAI has employees who are all highly trained and skilled professionals in the field of artificial intelligence, thus requiring competitive salaries.
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OpenAI also creates marketing campaigns for visibility and user reach, as well as customer support channels.
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Key Partnerships
Source: Duolingo
OpenAI has an extensive list of technology partnerships, as more and more companies are using ChatGPT's API to integrate the AI into their businesses. Some key tech partners include Duolingo, Microsoft, Snap Inc. (Snapchat), Slack, Bain & Company, and Coca-Cola (CITE).
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OpenAI also partners with various universities and academic institutions to conduct and fund AI research.
Resources & Activities
Source; OpenAI
The key resources for OpenAI are its developed infrastructure and data centers, its founders, current staff, updated research and development, and its advanced and evolving artificial intelligence models.
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The key activities performed by OpenAI are research and development, generative pre-trained transformer model creation and iteration, product development and partnerships, and customer support and community feedback and engagement.