In the evolving landscape of artificial intelligence, OpenAI is already carving out its legacy with an unprecedented achievement: it is on track to build a consumer internet empire at a pace never seen before. The company, known for its groundbreaking AI models, especially ChatGPT, is challenging the traditional growth metrics set by industry giants like Google and Facebook. Historically, Google took 13 years to reach 1 billion users, while Facebook achieved this milestone in just eight years. However, thanks to the explosive popularity of ChatGPT, it seems OpenAI is poised to reach that same mark in a mere three years.

This breathtaking speed of growth has even caught the attention of OpenAI's own leadership. Until quite recently, executives, including Chief Executive Sam Altman, emphasized their ambition to position OpenAI as an AI platform for businesses rather than a direct consumer entity. However, Altman revealed last week that the user base of ChatGPT has doubled in just a few weeks, now encompassing approximately 10% of the world's populationa truly astonishing statistic.

The rapid ascent of user engagement has left OpenAI grappling with fundamental questions that any consumer internet company must address. One pressing concern is how the company intends to maintain user engagement in an environment where major competitors, such as Meta and Apple, control key digital distribution channels. With Meta's extensive user base on platforms like WhatsApp and Instagram, and Apple's dominance through the iPhone, OpenAI is faced with a challenge reminiscent of Google's early days when it needed to secure a direct connection with its users amidst threats from operating systems like Microsoft Windows.

OpenAI can, however, highlight a significant distribution agreement it forged with Apple last year, which allows Apple's Siri to redirect certain user queries to ChatGPT when it cannot provide answers. Yet, this arrangement seems temporary, especially if Apple successfully overcomes recent setbacks that have delayed the full rollout of its own AI capabilities.

To navigate these hurdles, OpenAI may need to develop its own hardware and software solutions. Google once faced similar challenges and responded by creating the Chrome browser to compete with Microsoft and launching Android as an alternative to the iPhone. The success of this strategy has had lasting implications; currently, a judge overseeing a US antitrust case against Google will soon decide whether to compel the company to divest Chrome, potentially offering OpenAI a rare opportunity to acquire a widely used platform with more than half of the global internet audience.

Another crucial question that OpenAI has not fully addressed is how to monetize this burgeoning consumer audience. Traditionally, advertising has been the primary revenue source for mass-market internet companies. In contrast, Altman has expressed disinterest in pursuing advertising, preferring a business model based on subscriptions.

This strategy has yielded impressive results for OpenAI, with revenue soaring to approximately $4 billion in the last year and a staggering $300 billion valuation from investors. However, it is worth noting that Google did not attain such a valuation until its annual revenue reached $60 billionunderscoring the substantial proof that OpenAI still needs to provide in a competitive marketplace.

In a recent conversation with Ben Thompson from the Stratechery newsletter, Altman shared that he envisions generating revenue by directing users to e-commerce sites instead of relying on ad placements. If ChatGPT can evolve into a comprehensive assistant that internet users trust to navigate the digital landscape, it could position itself powerfully within the e-commerce sector. However, creating a new e-commerce ecosystem around ChatGPT is still a task on the horizon.

The third significant question facing OpenAI is the fundamental purpose of ChatGPT. The recent surge in user engagement coincided with the launch of image generation features in its GPT-4o model, which sparked a viral trend for creating images reminiscent of Studio Ghibli's unique animation style.

While these trendy features can generate spikes in usage, they do not provide a sustainable foundation for long-term growth. In contrast, Googles users have always understood the primary purpose of the service: to enhance web search capabilities.

Despite the challenges, many users have found immense value in ChatGPT, using it for tasks ranging from homework assistance to conducting detailed research. However, as the platform rapidly evolves, it faces competition directly with Google after web search capabilities were added just last October. Recent enhancements, including expanded memory that allows ChatGPT to retain user interactions for more personalized responses, mark significant steps toward realizing Altman's vision of an advanced online assistant.

While the product strategy appears fluid in a rapidly changing AI ecosystem, the ultimate goal remains somewhat elusive. As OpenAI races towards the 1 billion user milestone, it will need to demonstrate its capability to emerge as the next great consumer internet giant.