ChatGPT as CEO: Startup's €400K Profit & Rapid Success with AI
ChatGPT, an AI chatbot, takes the reins as CEO of a Portuguese startup, AIsthetic Apparel, turning it profitable within a week. The AI-driven company focuses on selling T-shirts with AI-generated designs, and with its innovative approach, projects a promising €400,000 annual profit.
Monday April 03, 2023,
3 min Read
In Portugal, a remarkable milestone has been achieved as ChatGPT, an artificial intelligence chatbot, has taken on the role of CEO in a startup company. Despite temporary restrictions on ChatGPT in Italy, this innovative move has led the Portuguese company to profitability in just one week.
Founder João F. Santos appointed ChatGPT as the CEO of his startup, AIsthetic Apparel, while taking on the role of an assistant. He devoted only an hour each day to execute the tasks given by the AI, adhering strictly to its directives, even if they appeared risky for the business.
Instead of venturing into services, Santos and ChatGPT decided to focus on selling T-shirts featuring AI-generated designs by Midjourney. The company's name and logo were also suggested and created by ChatGPT, blending "Artificial Intelligence (AI)" with "aesthetic."
ChatGPT formulated a 10-point business plan, which included launching an online store and partnering with Printful for printing the Midjourney-created designs. The AI even composed the descriptions for the images.
To secure funding, ChatGPT sought out investors Martin Andreas Petersen, Frederik van Deurs, and Vasco Conceição. Santos successfully raised $2,500 in exchange for a 25% stake in the company, starting with an initial investment of $1,000.
Priced at €35 per T-shirt, AIsthetic Apparel generated over €10,000 in revenue within five days. With €4,000 in costs, the company made a profit of €7,000. If this sales trend continues, the AI predicts an annual profit of €40,000 and a company valuation of €4 million.
Some Key decisions made by Chat-GPT-CEO were as follows:
Choice of business.
Choice of niche and brand name.
The fancy 10-step Business Plan
The founder of AIsthetic Apparel, who previously worked as an early-stage investor, decided to consult their own experience and sought funding from angel investors. This strategy resulted in a $2,500 investment for a 25% stake in the company. With three close friends supporting them, offering advice, and proposing questions for the AI CEO, the startup was well-positioned for success.
The team proceeded to execute step 8 of ChatGPT's business plan, which involved implementing a marketing strategy. The founder announced the company's plans on LinkedIn, generating significant interest in the venture. Following the LinkedIn announcement, dozens of messages from potential investors flooded in, expressing interest in joining the company's cap table.
Upon consulting ChatGPT, the AI CEO set the pre-money valuation at an impressive €4 million, reflecting a bold step forward into the world of AI-driven business management.