OpenAI has launched apps inside ChatGPT in its bid so as to add performance and enhance monetization of the product.
On this podcast, Motley Idiot contributors Travis Hoium, Lou Whiteman, and Rachel Warren talk about:
- ChatGPT will get apps.
- App alternatives.
- A trillion-dollar query for ChatGPT.
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A full transcript is beneath.
This podcast was recorded on Oct. 08, 2025.
Travis Hoium: Is synthetic intelligence in want of an app retailer? Motley Idiot Cash begins now. Welcome to Motley Idiot Cash. I am Travis Hoium. I am joined by Lou Whiteman and Rachel Warren. We have got to get to the large information of the week. We have got a few days to course of this, that’s OpenAI introducing apps. They’ve tried a few of these issues earlier than, plug-ins, customized GPTs to various ranges of success, however clearly they are going in a unique path now. However this was I believed a extremely attention-grabbing announcement as a result of the imaginative and prescient here’s a lot larger than simply being an AI device. It is being the working system of your life, if you’ll. There are firms concerned who’re willingly constructing apps, firms like Zillow, Expedia, Reserving.com. Rachel, what are you taking away from this and what ought to buyers find out about OpenAI’s transfer into apps? It isn’t fairly an app retailer, however they’re making apps.
Rachel Warren: Yeah, it is attention-grabbing. I feel you may see how quite a lot of the efforts that they’ve leveraged prior to now possibly have led them up to now. I wish to speak slightly bit about how this app retailer works and why I additionally do assume this might be actually completely different from what we have seen in OpenAI prior to now. Their app retailer, is that this new platform, it is built-in instantly inside ChatGPT, and it mainly permits customers to work together with third social gathering apps utilizing dialog pure language. As an illustration, you may ask ChatGPT to create a playlist with Spotify or discover homes on the market with Zillow after which these apps are activated from instantly inside the ChatGPT dialog. As an alternative of getting to go away the chat to make use of one other service, these apps run instantly within the thread. I feel the concept is to simplify the person expertise. At launch they’re partnering with some actually massive firms, with Spotify, Reserving.com owned by Reserving Holdings, Expedia, Zillow, Figma which is newly public, in addition to non-public firms like Canva. I feel it is attention-grabbing to notice, their previous makes an attempt like plugins that you just alluded to. These had been restricted text-based entry. They had been actually inflexible invite-only methods for builders. The chat interface was actually cumbersome. Importantly, monetization wasn’t actually a core function there. Now, these new apps, I feel, are very a lot designed to be a funnel towards monetization the place OpenAI might make cash from extra of a income sharing mannequin. It is actually attention-grabbing to see what they’re doing with this.
Travis Hoium: Lou, is that this the way in which that we’ll be utilizing AI sooner or later? The imaginative and prescient right here I feel is, look on an iPhone or one thing or one other smartphone. You are going to obtain apps after which you are going to truly work together with the app. You are not likely calling them from one thing like Siri, however that is taking that to the subsequent stage and going, hey, Zillow why do not you simply construct for this AI chatbot and we’ll simply name your data. Is that the way in which that we’ll go sooner or later?
Lou Whiteman: Possibly. I’ll say this, if it really works pretty much as good because the demo, it is gold. However I’ve realized I feel we have all realized to not simply purchase the demo. What I fear about right here is there is a rubbish in rubbish out drawback, I feel, as a result of AI is not truly sensible, it is simply skilled on information. Simply to select on one, Zillow, their walkability rating is the most important, I should not name it rubbish so I am going to simply name it sub-par. [LAUGHTER] You may’t truly know whether or not or not a home, you may stroll round it from the walkability rating. Within the instance of give me a home that I can stroll you to eating places from, if it is primarily based on the Zillow walkability rating, I feel it’ll be sub-human responses. I feel there is a trillion of those issues to be labored out. I feel there’s all kinds of questions that we will get to later about Walled Gardens versus all people there and the way you make this work. To me, I wish to get excited. It seems actually good on paper, however I ponder if that is one in every of these items that is all the time going to look higher on paper than it’s in actual world execution.
Travis Hoium: In line with some interviews by Sam Altman prior to now couple of days, the imaginative and prescient right here is larger, and it’ll all make sense in a number of months. Possibly we have to maintain slightly bit on what the complete imaginative and prescient is. However I feel what was attention-grabbing with these apps and one of many causes that that is pertinent to us as buyers, I feel it is from a disruption angle. If you consider the most important disruptions are transferring to a unique expertise paradigm, so the PC. You’ve got alternative and disruption, the Web alternative disruption, cell gadgets, identical factor. If ChatGPT turns into the way in which that we work together with expertise, now you do not have Zillow as an aggregator. You do not have reserving.com as an aggregator. You’ve got ChatGPT within the energy place. Altman even stated, we might have simply who had gone out and known as all the data that Zillow was calling, however we needed to work with these companions like he is being some philanthropist with the expertise. However that is, I feel, a threat for a corporation is for those who’re shedding that direct buyer relationship and also you’re giving it to ChatGPT, is that this a very good factor, even for those who’re partnering with the main AI firm in the present day, Lou?
Lou Whiteman: There’s a lot right here, a lot unpacked. For one, the large factor is, earlier than we even get into the manufacturers, it is privateness. OpenAI has a ton of information. Can OpenAI simply ring off my desirous to e-book a visit with out telling each different companion they’ve? Hey, Lou goes to be in Toronto subsequent week. Why do not you promote him stuff, issues like that. There’s all kinds of simply on that layer. I like solely Expedia understanding if I’ll Toronto. However the larger factor right here, this complete thought of the OpenAI as the brand new Home windows. Home windows grew to become Home windows as a result of it labored with the whole lot. That was it, no matter you needed to construct, you may do. There is a hen and the egg drawback right here. You want prospects, you want a ton of shoppers to draw each retailer to come back on board or each web site to come back on board, however you want retailers to lure the purchasers. In idea, sure, there’s a good world right here the place it is simply I’m going to my OpenAI, and that is all I ever want. However how we get there’s a bear.
Travis Hoium: Yeah, Rachel, this does appear to be an space the place it is attainable for disruption if this imaginative and prescient works. However it’s fairly unclear precisely how that is going to play out, given the huge dimension of this imaginative and prescient, not solely from a expertise standpoint but additionally from a monetary standpoint.
Rachel Warren: Yeah, I wish to stress that I feel there’s room for a number of winners right here. You understand, I do not assume OpenAI is available in, after which that normal enterprise mannequin from a few of these flagship gamers simply goes out the window. As you famous, it’s extremely early days. We’re nonetheless ready to see how precisely is OpenAI going to monetize this? Are customers going to undertake this at a broad scale. However I do assume it’s attention-grabbing to take a look at the Bear thesis for a minute. Who might face disruption right here if this kind of platform ecosystem actually takes off? Clearly probably the most important disruption, which is what you alluded to, can be firms whose core enterprise is offering a person interface for particular duties. You possibly can take into consideration how Apple, Alphabet Google, Microsoft, which clearly management their respective ecosystems might face market threats. In fact, there’s different firms you consider the Adobes and gross sales forces of the world. They’re already experiencing some market skepticism amid the AI revolution. Then there’s the normal search engine enterprise, which after all is dominated by Google. May that be disrupted? OpenAI’s strategy has been to break down the search to transform course of. That might permit on this new app retailer, customers to work together with companies instantly inside ChatGPT. You possibly can even take into consideration how firms like Uber or DoorDash, who’ve actually constructed their worth on having customers work together with their particular app to e-book a service might face some threats, however I do not assume the precise actuality goes to be this bleak. Truthfully, I feel extra probably than not, if this new use case for AI succeeds, we’ll in all probability see customers undertake it as one different device of their huge toolkit within the digital age. I do not assume sturdy firms with sturdy aggressive benefits are going anyplace. If something, possibly they will use this kind of device to play to their strengths in the event that they execute it proper.
Travis Hoium: We’ll speak about that potential widening the funnel in only a second. You are listening to Motley Idiot Cash.
Widening the funnel for a few of these purposes. Some that had been introduced as apps which might be coming quickly, Peloton, DoorDash, Goal, it’s attainable that ChatGPT permits extra prospects to work together with these purposes than that they had beforehand. If you happen to’re not any person who has downloaded the Peloton app and signed up for Peloton, you do not have entry to that. Identical factor with Goal. Possibly you do not store at Goal, however possibly simply having a dialog with ChatGPT is an effective means for them to broaden out and get extra prospects. Is that attainable that a few of these purposes, at the very least, are going to see this as a option to carry extra prospects to them? It is a chance as a substitute of a menace, Rachel, as a result of I feel there’s all the time two sides to the coin right here, and one of many issues we’ll speak about in a minute is how on this planet does ChatGPT make cash? Nicely, when you have a enterprise that makes cash and your drawback is buyer acquisition, possibly ChatGPT solutions this for you.
Rachel Warren: Yeah, I do assume it might widen the funnel. I additionally assume an necessary level to make is, you see all of those main firms which might be onboarding within the very early launch of this app retailer. I do not assume these firms can be coming to the desk with OpenAI in the event that they thought this was simply going to cannibalize their enterprise. I feel they see this as a chance.
Travis Hoium: That is often the way in which that disruption works, to be honest. [LAUGHTER] As you see it, Disney bought their content material to Netflix and mainly armed the rebels.
Rachel Warren: To play the bull case right here, I do assume that quite a lot of these firms and others may view this integration into the OpenAI app ecosystem as a chance to widen their person funnel. The factor is, AI can commoditize very primary features, however I feel these firms are pondering that they will leverage OpenAI’s platform to possibly ship extra built-in, personalised, and even environment friendly experiences that might draw customers again to their core companies and information. You may truly take Zillow for example, which Lou was speaking about earlier. Say a person makes use of ChatGPT to search out properties close to a sure location. For instance they wish to get the estimate valuations. They wish to view the 3D digital excursions. They wish to join with a Zillow premier agent. They must then return to that app ecosystem. That might make them extra of a gateway to a few of that prime worth information. That is only one instance. I do assume there might be a aggressive alternative for firms that play this proper. I simply assume it is too quickly to know for positive what that is going to appear to be. I feel it is also honest to say to your level, Travis, there could be firms which might be onboarding to this as a result of they worry getting left behind. That is additionally probably an element at play.
Lou Whiteman: Two ideas right here. For one, the concept of, so I am not a Peloton buyer. I possibly put in one thing in OpenAI, how can I get in form? Then, am I going to get spammed with Peloton? [OVERLAPPING] I preserve going again to this as a result of this all simply rings as one thing that sounds so a lot better on stage than it does in execution. I am going to offer you one other instance of this. Who’s the gatekeeper right here? Reserving and Expedia are each companions proper now. If I wish to fly to Minnesota, who will get that enterprise? Who decides that? Is {that a} aggressive public sale factor? As a result of whether it is, and it will get costly, [OVERLAPPING].
Travis Hoium: As it really works proper now, you would need to particularly name reserving.com. [OVERLAPPING]
Lou Whiteman: However for those who try this, you are not broadening the funnel. I am already a relationship. If DoorDash and Instacart are each on this system, and in the future, I say, I want milk. How does that work? There’s quite a lot of ways in which, sure, in idea, if they will work all of this out, it’s intriguing. However there’s all kinds of, I preserve pondering of that meme the place it is like, step 1, do that. Step 2, 3, and 4 is clean, and step 5 is revenue. There’s quite a lot of blanks in that center proper now so far as determining the economics right here, who will get paid what and the way it all works out. I get the imaginative and prescient, I simply preserve coming again to those execution issues and questioning.
Travis Hoium: Nicely, that is a query I feel we should always dive into slightly bit is is that this a TenX enchancment? The idea for lots of disruptions and transferring individuals from what they’re doing in the present day to doing one thing else is that it needs to be 10 instances higher. If you happen to return to the arrival of the PC. You are transferring from doing math, for instance, on paper to doing it on a pc, means simpler. The Web, now instantly the encyclopedias that we had at dwelling you may simply discover all that data on-line. Cell gadgets, now that every one that data is simply in your pocket. All these are simply TenX enhancements. Goes to 1 app, and that is the place possibly we’ll discover out extra about what the {hardware} future for OpenAI seems like over the subsequent couple of months. However I do assume that may be a query, Lou is that this the advance in our lives that’s going to necessitate us truly adopting OpenAI as our do the whole lot utility as a substitute of the way in which that we’re doing issues in the present day.
Lou Whiteman: Yeah, and one other level on this. If we get into retail in a second, we will do extra. However look, most buying will not be as thrilling as what these displays would say. Most buying is, I want a gallon of milk, I want one thing. It isn’t I wish to discover new trend tendencies. I do not know if that we want a killer app for all of this. I see the use case, I see the idea, the execution, it is simply the precise daily implementation for us normies. I do not know the way you get there.
Travis Hoium: Let’s speak about a type of darkish horses, Rachel. I believed it was attention-grabbing that Goal was listed as one in every of their apps that is coming quickly. Each one in every of these different firms is a tech firm. I suppose all trails can be possibly not fairly as a lot of a tech firm. However there you might have a retailer that is struggling within the massive field retail area. Possibly this can be a option to appeal to some new prospects. May there be some darkish horses right here the place you lengthen the long run? We have gone, particularly in retail, I feel that is possibly one of the best instance is that Amazon has sucked all of the oxygen within the room since you select to go to the Amazon app. Nicely, Amazon, guess what? They do not wish to be on ChatGPT and be disaggregated. Does that current a chance for firms that may, such as you stated earlier, go, hey, I am not solely not going to be left behind, however I’ll reap the benefits of this as a result of I haven’t got the identical digital footprint as an organization like Amazon.
Rachel Warren: I do assume there’s a chance there for firms like Goal which might be well worth the traditional brick and mortar that even have a robust on-line presence and others. However I feel quite a lot of the utility of this goes again to how helpful it’s to the buyer. I feel the core thought right here is that if you’re, say, buying, you are on ChatGPT relatively than having to go and open up a sequence of various apps to search out the stuff you need. You may inform ChatGPT to open up a particular app and seek for the factor that you really want inside that person interface. I do assume that is one thing that’s compelling to a shopper, notably these of us who’re on our telephones, on our gadgets so much. For Goal’s half, as you talked about, they’ve had a really tough few years, notably popping out of the pandemic, in addition to a bunch of different points which were very particular to them they usually have additionally been, I feel, very a lot adopting quite a lot of completely different AI instruments into their total enterprise. They already use generative AI, for instance, to enhance quite a lot of their product show pages on their web site. That they had final yr launched a proprietary generative AI chatbot for retailer staff known as Retailer Companion. I do assume they may use a few of that standoff perspective that Amazon has leveraged prior to now and as a substitute actually concentrate on key areas the place they will construct aggressive differentiation. I do assume that would present a seamless, extra personalised expertise. Does this save an organization like Goal from a few of its present woes? No, however does it present maybe a extra unified ecosystem that will get extra eyeballs to its platform from customers? I feel that is attainable.
Lou Whiteman: I do not wish to choose on Goal right here as a result of I take pleasure in Goal, however Goal is a vacation spot for pragmatists, not for dreamers. I do not know, again to my different level, Goal is the place you go once you want pet food or rest room paper or one thing. I do not know if I want an AI custom-made expertise for that. I am undecided I am ever going to be like, I am attempting to find some good present from my spouse.
Rachel Warren: A few of us girls are at Goal dreaming as we stroll by means of the aisles, Lou. You don’t have any thought [LAUGHTER].
Lou Whiteman: Possibly so, however I do not know. I like their curbside drop off and supply. I feel they’ve performed good issues. I preserve going again to this, and I hate to be such a moist blanket, but it surely looks like an answer in the hunt for an issue for Goal right here.
Travis Hoium: We’ll see out to see how this performs out and as this imaginative and prescient rolls out, particularly with probably new gadgets, possibly that can change the sport. Subsequent, we’ll ask the trillion greenback query, and that’s how on this planet does OpenAI and all of their companions pay for this? You are listening to Motley Idiot Cash.
Welcome again to Motley Idiot Cash. Look, this is the trillion greenback query for OpenAI. We’re by means of all their companions, spending someplace round $1 trillion, in all probability greater than that at this level. How are they going to pay for all this, are these apps going to be a part of that answer? If you happen to squint, you may see a monetization technique, but it surely’s not likely clear but, Lou. Is that this going to be the important thing to the way forward for OpenAI changing into that firm that may pay for tens of billions of {dollars} of compute annually.
Lou Whiteman: Travis, let’s be clear right here. Sam Altman says he is centered on the shopper expertise and never monetization. Clearly, yeah, however come on. I do assume again to some extent you made about, is that this a leap step ahead or incremental? How do you flip this into an enormous moneymaker, whether it is incremental? I come again to the hen and the egg query. If you wish to make cash off of the buyer signing up for premium OpenAI, you darn effectively higher have quite a lot of retailers, quite a lot of companions. However how do you get these retailers of companions if you do not have lots of people signed up. There’s experimentation, possibly there’s losses. That is why you concentrate on the shopper expertise now. Are we headed to Walled Gardens? Am I actually going to wish to use this if I can get Goal however not?
Travis Hoium: It looks as if that is what OpenAI needs to construct, although they’re saying that is not what they wish to construct.
Lou Whiteman: Proper, effectively, by default. I feel OpenAI wish to be so current in all places that each retailer simply needs to be on it the way in which each retailer is. However proper now I can get a Google search and see the world. Till possibly there may be only a specialised factor like, I wish to use Reserving, and I do know Reserving is on right here, and I just like the interplay, so I’ll choose in that means, however that is not the way in which to riches. I feel there’s once more, if this turns into an open discipline the place the whole lot’s concerned like Google, I do not know if OpenAI has the benefit there. I do not know if commoditization is their buddy and if it turns into tougher to cost on the again finish, in order that’s, I feel, why they want simply companions opting in. However I feel that simply makes it tougher to get shopper adoption. I feel it is actually, actually exhausting to make this repay in an enormous means. It might be a aspect function, however this isn’t a core enterprise right here for the way in which they’re spending.
Travis Hoium: What do you assume, Rachel? Is that this the preview of how is the going to make cash? Is it sufficiently big?
Rachel Warren: I feel it is means too early to say. I feel, truthfully, OpenAI is making an attempt to determine their monetization technique at this level. I feel that is pretty apparent. If you consider a few of their most superior fashions, like Sora. The large problem there, coaching and working these fashions, that requires monumental funding in computing, energy, information facilities, and now you might have the brand new app retailer and the aim seeming is to take a fee on gross sales from commerce queries, relatively than possibly counting on that conventional advert system. I noticed one report that prompt there might be one thing like a 2% affiliate payment within the works, and you then’ve obtained, after all, this very excessive funding Sora product, they usually’re reportedly transferring towards a tiered subscription mannequin.
Travis Hoium: Now, a 2% affiliate payment appears like so much. However for those who take a look at how a lot firms spend [OVERLAPPING] on issues like Meta adverts. It is considerably greater than that. The shopper acquistion price may be 20, 30% of a purchase order value.
Rachel Warren: That is the place you take a look at all this and also you dig beneath the floor a bit, and it is nonetheless actually unclear how a lot of a income producing enterprise are these new initiatives going to be, a lot much less driving the corporate towards profitability. Clearly, probably the most important and speedy income is more likely to be enterprise partnerships, they usually do proceed to lift huge funding rounds. I feel they’re engaged on their monetization technique, they usually’re seeing what sticks. I feel that is actually necessary to remove from all these latest bulletins that we have been seeing.
Lou Whiteman: I feel one filter to only as you take a look at all this, bear in mind, OpenAI wants this greater than their rivals. Meta has that fireside hose of income coming in to fund this. Alphabet has Google funding this. OpenAI is the one right here as an official nonprofit that, A, they are not topic to the identical SEC guidelines, to allow them to do extra of the Silicon Valley pretend till you make it. I do not imply that as towards them, I feel, as they need to.
Travis Hoium: However it labored.
Lou Whiteman: Proper, and that must be their technique, but additionally they must be saying, take a look at us, take a look at what we’re doing. It is a neat imaginative and prescient of the longer term. I do not assume it is a slam dunk they get there, as I take a look at this, it seems like an organization that’s want casting as a lot as they’re implementing. A part of want casting is, such as you stated, Travis, see what occurs and stick to what works.
Travis Hoium: I’ve heard you stated that they must preserve spending as a result of in the event that they fall behind, they’re performed. They must sustain with the Alphabets, the Metas, all people that is investing tens of billions of {dollars}, in order that’s why this imaginative and prescient retains getting larger. Possibly there’s a pot of gold on the finish of the rainbow, however we’ll see. As all the time, individuals on this system could have curiosity within the shares they speak about, and the Motley Idiot could have formal suggestions for or towards, so do not buy or promote shares primarily based solely on what you hear. All private finance content material follows the Motley Idiot’s editorial requirements and isn’t accredited by advertisers. Ads are sponsored content material offered for informational functions solely. To see our full promoting disclosure, please try our present notes. For Lou Whiteman, Rachel Warren, Dan Boyd, behind the glass, and our whole Motley Idiot group, I am Travis Hoium. Thanks for listening to Motley Idiot Cash. We’ll see you right here tomorrow.
