ChatGPT Craze Cools But Generative AI Heats Up With Custom Models, Data Deals, Developer Ecosystems

‍ChatGPT Interest Cools But Generative AI Gets Serious

ChatGPT took the world by storm when it launched in November 2022, gaining 100 million users within just two months. Searches for "artificial intelligence" skyrocketed over 40 billion. Venture capital poured into AI companies.

But the initial frenzy has cooled a bit. ChatGPT use has declined and fewer people are googling AI. Still, a serious generative AI industry is taking shape behind the scenes. Three key forces will determine the landscape: computing power, data, and money.

Faced with massive computing costs, OpenAI is developing more efficient models like GPT-3.5 rather than jumping straight to GPT-5. This allows rivals like Google to potentially catch up with models like Gemini. Smaller niche models are also proliferating, trained on specific data for targeted uses. Startups like Replit have models honed for coding. Open source options are spreading generative AI capabilities.

The data hungry models also drive competition. To train models with over 1 trillion words, companies are seeking new sources beyond the tapped out internet. Some are partnering with news and media agencies or synthesizing training data algorithmically. Video and other data types are being explored. The model trained on the most relevant data will win out.

Monetization is another driving force. OpenAI has pivoted from general Chatbot models to paid business applications, partnering with companies like Microsoft and Morgan Stanley. Competitors are following suit. Attracting developers to build on models also creates valuable network effects.

The hype around ChatGPT itself may have cooled, but serious competition is just heating up to leverage generative AI commercially with customized models. Who cracks computing efficiency, big data, and monetization will lead the field.