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Yes, it is. A 1% conversion rate is utterly pathetic and OpenAI should be covering its face in embarrassment if that's. I think WinRAR might have a worse conversion rate, but I can't think of any legitimate company that bad. 5% would be a reason to cry openly and beg for more people.
Edit: it seems like reality is closer to 2%, or 4% if you include the legacy 1 dollar subscribers.
Demand is based on cost. OpenAI is losing money on even its most expensive subscriptions, including the 230 euro pro subscription. Would you use it if you had to pay 10 bucks per day? Would anyone else?
If they handed out free overcooked rice delivered to your door, there would be a massive demand for overcooked rice. If they charged you a hundred bucks per month, demand would plummet.
That's literally what it's being marketed as. It's on literally every single page openAI and its competitors publish. It's the only remotely marketable usecase they have, because these things are insanely expensive to run, and they're only getting MORE expensive.