ChatGPT and Perplexity AI Revise Free Plans in User War

OpenAI and Perplexity AI are making adjustments to their platforms in pursuit of attracting a larger user base and generating increased revenue.

No Need to Create Account or Log In for OpenAI

OpenAI recently announced that it will offer access to GPT-3.5 without requiring users to create an account or log in, thereby reducing barriers to entry.

In its blog post, it stated that:

"Starting today, you can use ChatGPT instantly, without needing to sign up. We're rolling this out gradually, with the aim to make AI accessible to anyone curious about its capabilities."

However, this version of ChatGPT will come with additional safety measures, such as prompt blocking and limitations on generations across various categories.

OpenAI said:

"There are many benefits to creating an account, including the ability to save and review your chat history, share chats, and unlock additional features like voice conversations and custom instructions."

OpenAI has clarified that prompts submitted by users without accounts may still be utilised to train its models, though users have the option to disable this feature in the service's settings.

The company added:

"For anyone that has been curious about AI's potential but didn't want to go through the steps to set up an account, start using ChatGPT today."

Perplexity AI Open to Use Without an Account

Perplexity AI, established in August 2022 by a team of developers and engineers from prominent tech companies like OpenAI, Meta, Quora, and Databrick, led by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski, is taking a new approach to revenue generation by introducing advertisements to its platform.

Perplexity AI chief business officer Dmitry Shevelenko elaborated:

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"We are exploring potential advertising options inside of Perplexity, but we would only incorporate them in a way that still preserves the promise of unbiased answers. Our principles ensure we remain focused on delivering a best-in-class user experience as we introduce advertising solutions."

While users can already access the platform without creating an account, Perplexity AI aims to enhance its revenue stream through advertising.

However, CEO Dmitry clarified that ads will not precede responses, and advertisers will not have the option to pay for biased promotion.

Instead, Perplexity plans to integrate ads naturally within its "related questions" feature, providing brands with an opportunity to influence follow-up inquiries organically.

He explained:

"However, this is all speculative at this stage as we have no firm products built yet or timeline on releasing them. We will keep you posted as we finalise our plans and product scope."

It remains uncertain whether subscribing to the $20 monthly Pro tier will eliminate or reduce ads, as currently, a Pro account is required for certain features like image uploads, advanced AI functionalities such as Claude 2 and GPT-4, and enhanced search capabilities.

Notably, Perplexity's previous commitment to an ad-free experience has been removed from its website, signalling a strategic shift in its business model.