What makes a product go viral?
In the case of ChatGPT, a great product + strong partnerships.
The ChatGPT product team has certainly done a great job with the product.
With its simple UI, it feels like magic is just a click away;
there's no need for complicated coding,
joining Discord channels,
or anything else.
Simply open a browser and explore it.
Many people say this is the type of product that goes viral on its own.
For the most part, I agree.
OpenAI doesn't have a large marketing team,
nor does it run major campaigns or demos
to push the product to millions of users.
OAI also leveraged a phenomenon I call FLG "Funding Led Growth". Akin to a prize fight, the larger the purse, the more people watch, the larger the purse becomes, and so on. The sheer size of the investment used to build OAI and ChatGPT created a gravitational force that tugged on users and media alike.
But if you examine their growth, you'll notice a critical factor:
their partnership strategy, especially with Microsoft.
Here's what Microsoft brings to the table.
→ 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻
Microsoft's extensive enterprise connections and
the vast network of companies using its Azure platform
give OpenAI an advantage they wouldn't have otherwise.
By integrating OpenAI into Azure,
the platform becomes the easiest choice for developing custom AI models, exposing OpenAI to a massive customer base.
Azure has penetration with ~ 95% of Fortune 500,
has over 145M daily active users on Microsoft Teams,
and over 250K companies using Microsoft Dynamics 365 and Microsoft Power Platform, according to Microsoft.
That's a lot of B2B/enterprise customers that OpenAI has a head start with.
→ 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 𝗘𝗳𝗳𝗲𝗰𝘁
The growth of AI relies on network effects,
but not in the traditional way seen with technologies
like telephones where more users directly mean more connections.
Here, the more users that engage,
the more data is available to train the AI,
making it smarter and more attractive to new users. (this is potentially a drawback or cause for concern for enterprise users which OAI needs to overcome)
When we first tested ChatGPT,
its responses were impressively human-like.
However, it was restricted to data up to 2021
—making it outdated for recent inquiries.
OpenAI's partnership with Microsoft provides a method to improve that.
User interactions on Bing serve as both a testing ground and a source of real-time data, allowing ChatGPT to constantly evolve and enhance its capabilities.
So the takeaway is simple:
create a great product first,
use this product as a wedge to attract customers and forge strong partnerships,
leverage this partnership to bring more customers on a large scale
(AND improve the product).
Both things are important but need to be in order.
Below is an image from Jaryd Hermann's article, "How OpenAI Grows."
In the bottom left, you can see how Microsoft's distribution and resources have been pivotal in fueling ChatGPT's growth.
Thoughts?