By September, OpenAI’s ChatGPT mobile app has been downloaded 15.6 million times worldwide. But despite the surge in installation the app’s noticed a notable deceleration in revenue growth.
Subscriber number levelling off
In contrast to the robust 31% growth observed in July and the even more substantial 39% in August, September’s revenue growth tapered off to 20%. This deceleration may signify that ChatGPT is edging closer to market saturation in terms of the number of mobile users willing to invest in the enhanced ChatGPT Plus subscription service. It also underscores the heightened competition in the field, with alternative options vying for the attention and subscription dollars of mobile users.
Since its launch in February, ChatGPT Plus has been providing users with a premium subscription experience. This subscription-based service offers access to GPT-4, availability even during peak usage hours, quicker response times, and priority access to OpenAI’s latest ChatGPT enhancements. Moreover, it plays a vital role in sustaining free access for ChatGPT users who rely on the service.
Despite the recent slowdown in revenue growth, ChatGPT managed to amass $4.6 million in gross revenue throughout September, spanning both its iOS and Android apps on a global scale.
This places ChatGPT in the upper echelons of AI chatbot apps, with only Ask-AI surpassing it in revenue, primarily owing to substantial advertising investments.
Growing competition
Ask-AI has managed to outperform ChatGPT’s app in terms of revenue primarily due to its aggressive advertising strategy. Thanks to its CEO’s strong track record in advertising, Ask-AI, founded in 2021, distinguishes itself by enhancing employee search results within internal knowledge bases and communication sources.
It streamlines what is typically a labor-intensive process by harnessing AI to deliver contextually relevant information, rather than merely providing links to internal documents.
Mode Mobile, a startup dedicated to making it more convenient for individuals to earn income using their smartphones, is another contender.
It’s worth noting that ChatGPT’s net revenue, while impressive, may be lower than its gross revenue due to the revenue share taken by tech giants Apple Inc. and Alphabet Inc.’s Google from in-app purchases. Nevertheless, even after these deductions, ChatGPT managed to amass approximately $3.2 million in net revenue for the month of September.
The US remains ChatGPT’s largest revenue source, accounting for 60% of its income, highlighting the nation’s continued appetite for the ChatGPT platform.
Despite its ongoing growth and substantial revenue, ChatGPT’s mobile app may face continued slowing as it approaches market saturation.
Key takeaways
- ChatGPT reached 15.6 million global downloads in September
- Revenues rose to $4.6 million which is a 20% growth, less than the previous months
- Competitors like Ask-AI thrive with aggressive advertising, while ChatGPT faces market saturation despite substantial revenue
