The hunger for cutting-edge AI among consumers is undeniable. OpenAI’s mobile app recently witnessed its most significant revenue spike ever, coinciding with the launch of GPT-4o, despite the model’s free availability on the web.
Debuting in mid-May, GPT-4o boasts advanced capabilities in text, speech, and video processing, alongside real-time responsiveness and a diverse range of emotive voice options – a substantial improvement from its predecessors.
This technological innovation has also spurred an increase in paid subscriptions on the ChatGPT mobile app, as revealed by an app intelligence firm.
ChatGPT mobile app is off the charts
According to a report by Appfigures, a mobile app analytics firm, the ChatGPT mobile app saw its biggest revenue spike ever in the wake of the GPT-4o launch. On the day of the launch itself, net revenue jumped by an impressive 22%. This upward trend continued in the following days, with net revenue reaching a peak of nearly $900,000 on Tuesday, almost double the app’s daily average of $491,000 (after accounting for Apple and Google’s commissions).
For context, it’s worth noting that the ChatGPT app had previously experienced a smaller revenue surge in April, but that was a one-off event. The sustained growth following the GPT-4o launch suggests a more fundamental shift in user behavior, driven by the desire to interact with the latest advancements in AI.
Apple’s App Store emerged as the dominant platform, contributing a staggering 81% of this new revenue. The US market led the spending charge, shelling out a hefty $1.8 million. Other countries joining the top ranks included:
- Germany ($282,000),
- UK ($212,000)
- Japan ($210,000)
- France ($147,000)
- Canada ($134,000)
- Korea ($123,000)
- Brazil ($117,000)
- Australia ($102,000)
- Turkey ($89,000)
Pay up if you want GPT-4o on the go
The key factor behind this revenue surge lies in OpenAI’s strategic decision to make GPT-4o accessible only through a paid subscription tier within the ChatGPT mobile app – ChatGPT Plus, priced at $19.99 per month. This strategy seems to be effectively driving user adoption of the premium service.
Prior to the launch of GPT-4o, the free tier of the ChatGPT app offered access to the previous version of the language model. While still powerful, it lacked the advanced capabilities of GPT-4o.
By placing the latest version behind a paywall, OpenAI has incentivized users to upgrade to the Plus tier, leading to a significant boost in mobile app revenue.
Moreover, the data suggests the upward trend is likely to persist, with a potential for further acceleration in the coming days. This development underscores a growing trend – mobile users are increasingly willing to pay a premium, even compared to popular services like Netflix, for access to cutting-edge AI experiences.
Featured image credit: Solen Feyissa/Unsplash
