OpenAI is treading treacherous waters

OpenAI is scaling back its push to turn ChatGPT into a full online shopping hub.

Instead of allowing users to complete purchases directly inside the chatbot, the company will now send shoppers to third-party apps to finalize payments.

Last year, OpenAI introduced an “Instant Checkout” feature that let users browse products and buy items without leaving ChatGPT. The system launched with partners like Shopify and Etsy, while major retailers such as Walmart and Target also joined the effort.

However, internal data showed that many users browsed products but rarely completed purchases within the chatbot. 

Running a storefront also proved complex, requiring accurate prices across millions of products, along with systems for refunds, fraud prevention, and tax compliance.

Investors welcomed the shift. Shares of Expedia rose 8%, and Tripadvisor climbed 13% as fears eased that AI chatbots could replace travel booking platforms. OpenAI said it will continue expanding AI-powered shopping recommendations.

Meanwhile, the company faced internal turmoil. Hardware team head Caitlin Kalinowski resigned after OpenAI’s controversial agreement with the Department of Defense sparked debate about AI and military use.

Kalinowski, who joined OpenAI in November 2024 after leading the development of augmented-reality glasses at Meta, said her decision was based on “principle, not people.” 

OpenAI confirmed her departure and said its Pentagon agreement allows responsible national-security use of AI while banning domestic surveillance and fully autonomous weapons.

The backlash that followed the announcement of the OpenAI–DoD deal also affected public sentiment. ChatGPT uninstalls surged 295%, while day-over-day downloads swung from 14% growth to a 13% decline.

Anthropic’s Claude, on the other hand, saw its US downloads surge 51%. Claude also climbed to the top of the US App Store charts.