OpenAI’s ChatGPT is driving a significant surge in spending on AI apps and services for smartphones.
Since its mobile release in May 2023, the chatbot has earned $529 million, nearly four times more than the second-highest earner, according to a new report from Appfigures.
AI app spending is expected to nearly quadruple in 2024, reaching $1.4 billion, with the U.S. accounting for about half of all AI app sales.
This rapid growth highlights a $2 billion market opportunity.
The emergence of DeepSeek could potentially raise questions about ChatGPT’s continued growth, but OpenAI CEO Sam Altman welcomed the competition, describing it as “invigorating to have a new competitor.”
Altman, along with other industry leaders such as Nvidia, believes that DeepSeek’s presence could draw more attention and users to the AI field overall.
He also mentioned that OpenAI would accelerate the release of some upcoming products in response.
The report also reveals that more than half of ChatGPT’s mobile users are aged 18 to 24, with the majority of AI users being male. In 2024, revenue across various AI app categories saw a dramatic rise, with an average growth of 862% across 12 analyzed market segments.
Despite the surge in revenue from AI apps, companies like OpenAI, Microsoft, and Meta Platforms still face the challenge of monetizing the vast investments in AI infrastructure.
However, smartphone users are increasingly willing to spend money to support the development of innovative AI software.
