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.