OpenAI Turns to Erotica as User Growth Stalls in Europe

OpenAI’s recent strategic move to introduce erotica content on ChatGPT marks a notable shift in its content policy, driven in part by waning user adoption in critical markets such as Europe (see chart below). The decision to allow adult themes, including erotica, for verified adults starting December 2025 was announced by CEO Sam Altman. This push to “treat adult users like adults” aims to make ChatGPT more engaging and human-like for a specific user segment, reflecting OpenAI’s attempt to reinvigorate interest amid slowing subscription growth in some regions.​

The flagship product of the AI industry, ChatGPT, is facing a major challenge as growth in paying users across Europe appears to have come to a standstill, signaling a serious warning about AI’s monetization potential. Germany’s Deutsche Bank reported that consumer spending on ChatGPT in the European market has been virtually stagnant since May 2025. Despite OpenAI CEO Sam Altman’s announcement that ChatGPT’s weekly active users have surpassed 800 million, Deutsche Bank noted a marked slowdown in paying users, with revenue growth lagging far behind streaming platforms like Spotify and Netflix.​

Deutsche Bank’s analysis highlights a significant gap between OpenAI’s corporate valuation — around $500 billion, approaching Netflix’s market cap — and its revenue scale and paid subscriber base, which remain far behind.

• Netflix: Market cap ≈ $500 billion, over 300 million paying subscribers, projected $45 billion in 2025 revenue, P/S ratio 12.5x
• Spotify: Market cap ≈ $144 billion, 276 million paying subscribers, projected $17 billion+ revenue, P/S ratio 7.3x
• OpenAI: As of April 2025, about 20 million paying users worldwide — with revenue far below comparable levels (~$20 billion), P/S ratio 25x

Thus, OpenAI’s $500 billion valuation appears disproportionately high relative to its actual revenue.

The bank tracked spending data across Europe’s five major markets — France, Germany, Italy, Spain, and the UK — and found that monthly spending growth on ChatGPT has sharply slowed since May 2025 without the seasonal rebounds seen in previous years. This stagnation suggests a structural issue rather than a temporary dip.​

Deutsche Bank concluded: “Although the data is limited to a few European countries and subject to statistical variation, the current stagnation should not be taken lightly.”

The report underscores AI’s commercial challenge: while the technology has immense influence and potential to boost productivity, the path to profit remains unclear. The true challenge for OpenAI isn’t the algorithm itself but the business model, particularly the conversion of large user traffic into stable paying subscribers. Initial growth was fueled by curiosity and free use, but sustaining growth requires retention and perceived long-term value post-monetization.​

OpenAI’s turn to erotica content may be seen as a desperate attempt to reignite growth by appealing to a different, possibly underserved audience segment. However, this controversial move has sparked debate over ethics and regulation and may pose risks to broader brand trust.​

Meanwhile, OpenAI faces intense competition from Chinese firms like Tencent and DeepSeek, which deploy cutting-edge innovations to drastically reduce AI training and inference costs. DeepSeek claims operating costs about 1/20th of OpenAI’s through advanced caching and optimized architectures, enabling more scalable and affordable AI solutions. Tencent, one of China’s largest tech conglomerates, has significantly impacted the AI landscape by integrating its AI capabilities into a vast ecosystem that includes gaming, social media, cloud computing, and enterprise services. Tencent’s AI models leverage homegrown chip technologies and optimized hardware to reduce reliance on Western chips and lower costs. This comprehensive approach provides Tencent with a competitive edge, allowing rapid innovation and deployment at scale, effectively challenging OpenAI’s global market lead.​

A particularly troubling aspect of expanding AI use, especially with ChatGPT erotica and AI personas, is how it can contribute to deceptive social behaviors and financial harm. The phenomenon of “chatfishing” — where individuals use AI tools like ChatGPT to craft false romantic or sexual identities online — has become more prevalent, complicating the dating landscape. People have reported feeling emotionally manipulated and ‘ChatGPT-ed into bed’ — realizing they were interacting with AI-generated personas rather than genuine human connections. This disconnection can lead to poor personal decisions, emotional distress, and in some cases, financial exploitation when trust is misused. The blending of erotica and conversational AI may exacerbate these risks as users engage more deeply and emotionally with AI, increasing vulnerability to deception and financial loss.

Regarding regulatory frameworks, the introduction of erotica content in AI platforms like ChatGPT is entering largely uncharted legal and ethical territory. Currently, there are limited explicit regulations globally dedicated to AI-generated adult content. Regulatory bodies in the EU and U.S. are actively discussing frameworks around AI safety, content moderation, and age verification mechanisms, but a comprehensive, enforceable standard specific to erotica in AI has yet to be established. This regulatory gap raises concerns about protecting minors, preventing misuse, and ensuring user consent and data privacy. OpenAI and similar companies are under growing pressure to implement robust safeguards voluntarily, but the absence of stringent laws means much rests on corporate policies and evolving governmental oversight in the near future.​

Historically, the widespread availability of pornography has had complex effects on social behavior, including changes in relationship dynamics, expectations, and personal well-being. Studies have linked excessive consumption of adult content to issues such as addiction, diminished intimacy, and distorted perceptions of consent and sexuality. When combined with AI-generated content, these risks can be magnified by the realism, personalization, and emotional engagement that advanced models enable.

Conclusion

In summary, OpenAI is navigating a challenging landscape marked by stagnant growth in paying users in Europe, monetization hurdles, and formidable competition from cost-efficient Chinese AI providers. Its strategy to incorporate erotica content signals an effort to diversify engagement, but the future will require stronger innovation in cost-effective AI deployment and a sustainable business model to uphold its market leadership in a maturing AI ecosystem.

Investors are intently monitoring OpenAI’s upcoming revenue report. Deutsche Bank has cautioned: “If the slowdown in paying-user growth continues, the valuation framework for the entire AI industry may face a major recalibration.”

In essence, the plateau in ChatGPT’s paid subscribers in Europe isn’t mere statistical noise — it’s a harbinger of the harsh commercial challenges facing the AI industry. Advances in technology don’t inherently yield profits, potentially signaling the genuine turning point for the AI bubble.