ChatGPT’s Been Helping Klarna Slim Its Losses

ChatGPT’s Been Helping Klarna Slim Its Losses
Daniel Johnston

3 months ago2 mins

What’s going on here?

Klarna slimmed its losses in the first half of the year, and a certain famous chatbot might’ve had something to do with that.

What does this mean?

“Buy now, pay later” (BNPL) schemes let customers spread out their payments over time with interest-free credit. That’s a tidy idea when money’s good and those designer shoes aren’t technically in the budget. A potentially risky one, though, when the cost of living has emptied folks’ wallets and rate hikes have made interest-free debt a much bigger ask. But so far, even more shoppers are using Klarna to make nice-to-haves more manageable, and what’s more, inflation hasn’t stopped them from keeping up with their debts. Klarna’s real success, though, came from its shrewd cost-cutting and leaning into AI tools like ChatGPT to improve efficiency. That slimmed losses by two-thirds in the first half of this year versus the same time last year, and Klarna even wrangled a month of profit.

Klarna results
Source: Klarna

Why should I care?

For markets: Go U-S-A!

Klarna’s business was particularly blooming Stateside, now boasting around 30 million users and three straight quarters of gross profit. That’s just the ticket: Klarna has always said it wants an established US presence before it lists on the stock market. And while markets aren’t exactly shining right now, that means Klarna – once Europe’s most valuable startup – could hit the public stage in a few years.

Klarna US profit
Source: Klarna

Zooming out: You’re techy and you know it.

ChatGPT’s impact on Klarna shows just an iota of its potential in the business world. And OpenAI – the tech’s creator – knows it, launching a corporate version of the chatbot with new features and privacy settings designed to lure businesses in. That should hoist ChatGPT’s revenue even higher, adding to the already $1 billion annual sales it’s headed toward.



All the daily investing news and insights you need in one subscription.

Learn More

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG