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ChatGPT Started as Temporary Hackathon Project

by Nick Turley on August 9, 2025

Situation

  • Initial Context: OpenAI was primarily a research lab in 2022, with a developer-focused API product but no direct consumer offering
  • Strategic Challenge: The team faced two key limitations with their developer-only approach:
    • Slow iteration cycles (changes to models would break developer apps)
    • Limited feedback (user insights were filtered through developers)
  • Experimental Approach: A volunteer team of researchers and engineers from across OpenAI began prototyping different AI applications
  • Original Intent: The team initially planned to build a "super assistant" and tested various specialized applications (meeting bot, coding tool)
  • Key Insight: During testing, users consistently wanted to use these specialized tools for a much wider range of tasks

Actions

  • Pivot to Open-Ended Interface: After months of prototyping specialized tools, the team decided to ship something completely open-ended
    • "ChatGPT came together at the end because we just wanted the learnings as soon as we could"
  • Rapid Execution: The team went from decision to ship in just 10 days
  • Deliberate Simplicity: Named it "ChatGPT" (originally planned to be "Chat with GPT-3.5")
  • Holiday Timing: Released right before the holiday break, expecting to collect data and likely wind it down afterward
  • No Waitlist: Unlike previous OpenAI releases, they made it immediately available to everyone
  • Minimal Features: Launched without many basic features (like conversation history)
  • Free Access: Made the powerful model freely available to everyone

Results

  • Unexpected Growth: The product immediately went viral, with usage far exceeding expectations
  • Strong Retention: Users not only tried ChatGPT but kept coming back, with retention rates increasing over time
  • Emergent Use Cases: Users discovered and shared thousands of use cases the team hadn't anticipated
  • Rapid Scaling: The product grew to 700 million weekly active users
  • Business Evolution: What started as a research experiment evolved into a subscription business and enterprise product
  • Cultural Impact: ChatGPT became a household name and changed how people think about AI
  • Learning Engine: The open-ended nature created a feedback loop that accelerated model improvements

Key Lessons

  • Ship to Learn: In AI, you can't predict what will resonate until you put it in users' hands. "You won't know what to polish until after you ship."
  • Embrace Emergence: The most valuable use cases often emerge from users rather than being designed in advance.
  • Prioritize Velocity Over Polish: Moving quickly with an imperfect product is better than waiting for perfection, especially with rapidly evolving technology.
  • Public Learning Accelerates Adoption: When everyone has access simultaneously, users teach each other use cases, solving the "empty box problem" that plagues many horizontal platforms.
  • Treat Models as Products: Iterate on AI models like software products, not like hardware releases, by focusing on specific use cases and user needs.
  • First Principles Decision-Making: Question standard product practices when working with new technology paradigms.
  • Set a Fast "Resting Heart Rate": The pace you establish early becomes the team's default operating rhythm.
  • Follow Curiosity, Not Just Strategy: The most transformative products often come from intellectual curiosity rather than calculated market analysis.
  • Maximize Acceleration: Constantly ask "why can't we do this now?" to identify and remove unnecessary blockers.
  • Balance Speed with Safety: While moving quickly, establish rigorous processes for safety-critical aspects of AI development.