ChatGPT App Sees Slowing Growth as Users Reach Limit
ChatGPT, the popular artificial intelligence (AI) chatbot app developed by OpenAI, has achieved a significant milestone with over 15.6 million downloads worldwide, resulting in an impressive gross revenue of $4.58 million. However, recent data from Appfigures, a market intelligence firm, indicates a slowdown in revenue growth for the app. While it experienced a 39% growth rate in August, this declined to 20% in September. This observation suggests that the app may be nearing its peak in terms of users willing to subscribe to the ChatGPT+ service, which costs $19.99 per month.
Subscribers to the ChatGPT+ package enjoy several advantages, including faster response times, priority access during peak hours, and exclusive access to new features and enhancements. This subscription service has proven popular since its introduction in June, resulting in a notable rise in gross revenues from $2.1 million to $4.58 million by September. Despite this success, ChatGPT faces tough competition from rival AI chatbot app Ask AI, which outperforms ChatGPT in terms of revenue due to its significant investment in advertising.
Ask AI’s revenue has experienced steady growth, reaching $6.55 million in August after beginning at $6.48 million in May. Despite a slight dip to $5.51 million in September, it still surpasses the revenue generated by ChatGPT. Other competitors in the market, such as Genie and AI Chat Smith, have not achieved the same level of growth as Ask AI. It is worth noting that net revenue may vary, considering the heavy advertising expenditure by Ask AI.
The slowed revenue growth for ChatGPT reflects the challenge it faces in enticing a greater number of users to subscribe to its premium services. However, despite this temporary setback, the app’s overall success cannot be discounted, as it continues to enjoy a significant user base and substantial revenue. The impressive performance of Ask AI underscores the competitive nature of the AI chatbot market, where advertising expenditure plays a crucial role in attracting users and generating revenue.
As the AI chatbot market evolves, it remains to be seen how ChatGPT and its competitors will adapt their strategies and offerings to sustain growth and remain at the forefront of this highly competitive industry. While ChatGPT may be experiencing a slow in growth, its current achievements and market position are commendable.
