Coinspeaker
ChatGPT Mobile App’s Revenue Growth Slows after Hitting Record $4.58M Last Month
OpenAI’s chatbot ChatGPT has seen a record growth in downloads in September, which brought the revenue generated by its mobile app to $4.58 million. As many as 15.6 million downloads across iOS and Android app stores were reported for the previous month, but now seems that this growth is slowing down.
Google Play accounted for 9 million downloads in September, while the other 6.6 million were recorded by the App Store. The total number of ChatGPT downloads has hit 52.2 million.
According to the mobile app analytics and insights platform Appfigures, despite the record number of downloads, the revenue growth of ChatGPT has started slowing down. Compared to an over 30% revenue growth in the past few months (31% in July and 39% in August), the company demonstrated a 20% growth as of September.
Appfigures said:
“Our estimates show ChatGPT earned $3.2 million in September from the App Store and Google Play. That is net which means what OpenAI gets to keep after Apple and Google take their fees.”
Notably, OpenAI previously shared it was expecting the total revenue for 2023 to hit as much as $1 billion. Such a surge in revenue results from the sale of artificial intelligence software and the computing capacity that powers it. Besides, we have recently reported about OpenAI’s ambitious plans to run a share sale that could potentially push the company’s valuation from $29 billion to somewhere between $80 billion and $90 billion. Its last funds raise took place in April when OpenAI received a little over $300 million in funding at a valuation of $29 billion. It was backed by Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global among others. This followed a huge investment from Microsoft Corporation (NASDAQ: MSFT) back in January.
Reaching a $1 billion revenue would help OpenAI cover its losses that reportedly doubled to $540 million last year and expenses that could increase further as ChatGPT usage grows.
ChatGPT: Revenue Driver
Speaking of OpenAI’s key product, ChatGPT, it generates revenue through various methods, including providing API services to businesses and offering premium subscription plans to individuals and businesses who require more advanced features and capabilities.
For $20 per month, subscribers of ChatGPT Plus receive a number of benefits, such as general access to ChatGPT, even during peak times, faster response times, and priority access to new features and improvements.
ChatGPT drives the total revenue generated by OpenAI to its highs, but while it is still the biggest and most popular chatbot widely used, it is facing strong competition.
One of ChatGPT’s biggest competitors in the market is Google Bard, an AI-driven chatbot launched by Google LLC in March 2023. It uses training data taken from across the web to inform its responses. The chatbot is free to use, its developers had no declared intention to monetize it.
Other competitors include Microsoft Bing Chat – an AI-powered version of Microsoft’s Bing search engine, which launched in February 2023, and ChatSonic – an AI chatbot with the ability to create texts and images based on trending issues.
ChatGPT Mobile App’s Revenue Growth Slows after Hitting Record $4.58M Last Month
