ChatGPT App Revenue Remains Strong, Yet Competing AI Apps Surpass It in Earnings

ChatGPT Surges Ahead in the AI Chatbot Market but Faces Stiff Competition

ChatGPT, the AI-powered chatbot developed by OpenAI, leads the way in mobile downloads and revenue within the AI chatbot sector. Despite its widespread recognition as a premier AI chat experience, it surprisingly does not rank as the top revenue generator; numerous photo-related AI apps and alternative chatbots are currently out-earning ChatGPT.

Since its mobile launch in May, ChatGPT has seen impressive growth in both downloads and revenue. Initially available only on iOS, it garnered over 3.9 million downloads in its first month, which skyrocketed to 15.1 million by June, according to Apptopia's market analysis. After a brief dip in July, the app surged forward, reaching an impressive 23 million downloads by September 2023.

Moreover, ChatGPT's user engagement on mobile has skyrocketed from 1.34 million monthly active users (MAUs) in May to nearly 39 million by September. Equally noteworthy is ChatGPT’s mobile consumer spend, jumping from $352,929 at launch to approximately $1.98 million in September, and nearly $2.39 million by October 24.

Nonetheless, others in the AI chatbot landscape are proving competitive. The apps “Chat & Ask AI” and “ChatOn — AI Chat Bot Assistant” brought in revenues of nearly $3.38 million and $2.11 million in September, respectively. Close behind were “AI Chatbot — Nova” and “AI Chatbot: AI Chat Smith,” earning approximately $1.44 million and $1.72 million that same month.

The competition is intensifying, with at least five AI chatbot apps surpassing 2 million downloads in September. These include apps like “Chat & Ask AI” (2.44 million downloads), “ChatOn — AI Chat Bot Assistant” (2.02 million), “AI Chatbot — Nova” (3.1 million), and “AI Chatbot: AI Chat Smith” (2.9 million). Many of these apps have optimized their App Store visibility by ranking for terms like “AI Chat,” indicating a robust market for AI applications beyond ChatGPT.

Another player in the field, Character.ai—backed by a16z—enables users to engage with and create their own AI personalities, boasting 2.39 million downloads as of September.

Although ChatGPT remains the dominant force with 23 million downloads, several AI photo apps are closing the gap. “Remini,” for instance, achieved 16.17 million downloads in September, as its AI-generated headshots gained popularity on TikTok. Similarly, “PicsArt AI Photo Editor” had a strong month with nearly 16.05 million installs.

In terms of active users, “Remini” had around 6.2 million in September, while “FaceApp,” which incorporates AI filters, boasted over 6.4 million. Other competitors like “PicsArt” (4.27 million MAUs), “Wonder — AI Art Generator” (4.77 million MAUs), and “Facetune AI Photo/Video Editor” (5.22 million MAUs) also showed notable engagement.

Interestingly, many AI photo apps are generating significant revenue through in-app purchases, outpacing ChatGPT in this area. Various factors contribute to this trend; for example, ChatGPT promotes its Plus subscription mainly through the web, while photo apps derive revenue from in-app interactions on users’ smartphones. Additionally, viral marketing can play a crucial role in app retention and ongoing subscriptions.

As of September 2023, while ChatGPT garnered $1.98 million in mobile consumer spend, apps such as “Remini,” “PicsArt,” “Wonder,” “BeautyPlus — AI Photo/Video Edit,” “FaceApp,” and “Facetune: AI Photo/Video Editor” made significant revenues at approximately $6.22 million, $4.27 million, $2.08 million, $4.78 million, $6.42 million, and $5.22 million, respectively.

However, the enduring popularity of AI photo apps may not rival that of ChatGPT in the long term. For example, the once-viral app Lensa experienced a significant decline, dropping from 23.44 million downloads in December 2022 to just 413,814 monthly installs by September 2023, according to Apptopia. This decline suggests a trend where users often shift between popular AI photo applications as features evolve and new apps emerge.

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