OpenAI's Sam Altman Reveals ChatGPT Almost Didn't Launch Due to 'Atrocious' Early Retention

Sam Altman, CEO of OpenAI, recently shared a critical insight for startup founders, revealing that ChatGPT's early user retention was "atrocious," almost leading to the product's cancellation. Speaking in a video from Khosla Ventures, Altman emphasized that even minimal retention, such as 5%, can signal a product's underlying strength and potential for future growth. This reflection offers a counter-intuitive lesson for entrepreneurs often discouraged by low initial engagement.

Altman recounted the challenging early days of ChatGPT's development, noting, "This was back when the model was really bad. Very few of the users actually stuck with it. Retention was atrocious." Despite these grim statistics, a crucial observation emerged: "for the users that did retain, their usage increased over time." This pattern, where a small but dedicated user base showed increasing engagement, proved to be a pivotal indicator for the OpenAI team.

The executive admitted that the initial poor retention nearly derailed the launch of what would become a groundbreaking AI tool. He highlighted this experience as a profound learning moment, stating, "If you have a product that has any retention at all, you’re actually in really good shape. If it’s 5%, that can be totally fine." This perspective underscores that the default for new products is often a rapid decline to zero users, making any sustained interest a valuable asset.

Since its public release in November 2022, ChatGPT has defied its humble beginnings to achieve monumental success. The platform now boasts over 700 million weekly active users as of August 2025, demonstrating an exponential growth trajectory from its early, uncertain phase. This remarkable expansion from near-abandonment to widespread adoption reinforces Altman's advice on discerning true product potential beyond initial, potentially misleading, retention figures.