ChatGPT sign displayed on OpenAI website displayed on a laptop screen and OpenAI logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on February 2, 2023.
Jakub Porzycki | Nurphoto | Getty Images
What is ChatGPT? I asked the buzzy artificial intelligence chatbot, which has ignited conversation in schools, corporate boardrooms and social media, to explain itself.
In its own description, ChatGPT is “an AI-powered chatbot developed by OpenAI, based on the GPT (Generative Pretrained Transformer) language model. It uses deep learning techniques to generate human-like responses to text inputs in a conversational manner.”
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The tool is the talk of the business world. It has been mentioned on earnings calls by management from a range of companies including oil giants, banks — and even the industrial behemoth Caterpillar.
It has also sparked concerns over potential abuses. In classrooms, students have used ChatGPT to generate entire essays, while hackers have begun testing it to write malicious code.
So what is ChatGPT, exactly? Here’s a simple guide on all you need to know about the popular AI chatbot.
What is ChatGPT?
ChatGPT is an AI chatbot developed by San Francisco-based startup OpenAI. OpenAI was co-founded in 2015 by Elon Musk and Sam Altman and is backed by well-known investors — most notably Microsoft.
It is one of several examples of generative AI. These are tools that allow users to enter written prompts and receive new human-like text or images and videos generated by the AI.
ChatGPT provides an AI-generated answer to the query “Tell me about ChatGPT.”
Leon Neal | Getty Images
Prior examples include Dall-E, a text-to-image program from OpenAI that garnered attention from people captivated by its ability to come up with realistic, often absurd, pictures that match people’s text descriptions.
Lensa, an app based on open-source AI project Stable Diffusion, has been used to turn selfies into illustrious self-portraits inspired by everything from sci-fi to anime.
In ChatGPT’s case, the service is a text-based tool that can produce human-like responses to user requests — from poetry in the style of William Shakespeare to advice on what to do for a child’s birthday party.
What’s so special about it?
ChatGPT is powered by a large language model, or LLM, meaning it’s programmed to understand human language and generate responses based on large corpora of data.
ChatGPT’s LLM is called GPT-3.5. It is an upgrade of OpenAI’s GPT-3 language model.
With a whopping 175 billion parameters, GPT-3 is one of the largest and most powerful language processing AI models to date.
What makes ChatGPT so impressive is its ability to produce human-like responses, thanks in no small part to the vast amounts of data it is trained on.
“What’s exciting is that the responses are more and more human-like, so what you’re seeing is things that we did not think computers could do before,” Jeffrey Wong, global chief innovation officer at professional services firm EY, told CNBC.
Another thing that differentiates ChatGPT is its ability to log context from users’ earlier messages in a thread and use it to form responses later in the conversation.
Why is it so popular?
No generative AI application has quite managed to achieve the kind of influence and virality that ChatGPT has.
It has been the subject of countless memes and the talk of the business community at the World Economic Forum in Davos, Switzerland, last month. Chinese tech giant Baidu made its own version called Ernie Bot.
The chatbot signed up 1 million in the five days after its release, according to a Dec. 5 tweet from Altman. By January, ChatGPT had amassed 100 million active users only two months into its launch, making it the fastest-growing consumer application in history, according to a UBS note published last week.
It took TikTok nine months to reach 100 million users and Instagram two and a half years.
Jan. 31 was the biggest-ever day for ChatGPT, with its website garnering a record 28 million daily visits, according to data from Similarweb. That was up 165% from a month ago.
One reason for ChatGPT’s popularity is its accessibility. The service is public to anyone via the OpenAI website, and its potential applications range from school homework to legal briefs.
The timing has also played a part, according to Wong.
“When we come out of pandemics, you typically see this burst of creativity,” he said. “The biggest example is, after the Black Plague, there was this Renaissance, this burst of creativity across the board.”
Microsoft declined to disclose a specific dollar amount. A report from Semafor said the Redmond, Washington tech giant was in talks to invest as much as $10 billion in the company. Microsoft previously invested $1 billion into OpenAI.
On Tuesday, Microsoft held a press event where it announced new AI-powered updates to its Bing search engine and Edge browser. Altman confirmed Microsoft had incorporated some of OpenAI’s GPT-3.5 language technologies into Bing.
That was a day after Google unveiled its own response to ChatGPT, called Bard AI. The company plans to start rolling Bard out in Google Search in the coming weeks.
ChatGPT is seen as a threat to Google. Rather than turn to the web search pioneer for your most burning questions, people could rely on ChatGPT.
ChatGPT has its limitations. Responses from the chatbot can contain factual inaccuracies. For example, it can invent fictitious historical names and books that don’t exist, or fail to solve certain math problems.
ChatGPT’s knowledge is still limited to 2021 data, but may improve with time. Going forward, the expectation is that ChatGPT will be the precursor to much more advanced AI systems.
For now, experts say generative AI isn’t yet capable of achieving human-like, “general” intelligence.
Artificial general intelligence, or AGI, is often considered the holy grail of the AI community. It most commonly refers to the ability of an intelligent agent to understand or learn any intellectual task that a human being can.
Plenty of companies hope to achieve that, from OpenAI to Google’s DeepMind.
The possibilities of GPT-3 have already led to excitement about OpenAI’s next-generation LLM model, GPT-4.
Tempering expectations, OpenAI’s Altman pushed back on the hype surrounding GPT-4, stating in a recent interview with StrictlyVC that people were “begging to be disappointed.”
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.