‘Stagnation in AI’
European spending on AI programme ChatGPT have stagnated since May, transaction data shows, Deutsche Bank reports in a sector study. The analysts suggest that the figurehead of the AI boom is struggling to attract new paying subscribers. Although OpenAI CEO Sam Altman recently reported strong growth in the number of weekly active users.
The value of OpenAI subscriptions, which has been growing explosively since early 2023, has leveled off in major European markets over the past four months, Deutsche Bank said. Last year there was a similar dip in the summer months due to student holidays, but then growth quickly recovered in September. The current slowdown is striking, the analyst says.
Despite the stagnation in growth, ChatGPT is making unprecedented progress. The revenues are now almost half that of Spotify and a quarter of that of Netflix in Europe. If this year’s previous growth trend continues, ChatGPT would overtake them in spending in the coming years, Deutsche Bank said.