OpenAI's 'magical' GPT-4o launch leads to ChatGPT's "biggest spike ever" in revenue
OpenAI's recent launch of the flagship GPT-4o model has caused a significant spike in revenue and downloads for ChatGPT on mobile platforms. The launch of the GPT-4o model, with its advanced reasoning capabilities encompassing text, audio, and voice interactions, has been a game-changer for ChatGPT, resulting in what has been described as the "biggest spike ever" in revenue and downloads on mobile platforms.
Impact on ChatGPT Revenue
According to a report by Appfigures, ChatGPT's mobile revenue saw a notable 22% increase on the day of GPT-4o's announcement, marking the highest revenue generated by the app in a single day since its inception. The positive trend continued as the revenue nearly doubled the daily average revenue in May, climbing from $491K to nearly $900K.
Sustainability and Growth
This surge in revenue is not viewed as a temporary peak by Appfigures, which predicts a sustainable trajectory of growth for OpenAI's ChatGPT. The company estimates that ChatGPT earned a total net revenue of $4.2M from the App Store and Google Play, with a significant portion coming from the App Store.
ChatGPT Plus and User Reception
Despite the success of ChatGPT Plus, the premium membership model for ChatGPT, there have been mixed reactions from users. Some subscribers have expressed frustration over the $20 monthly subscription fee, especially considering the availability of Microsoft's Copilot with similar functionalities at no cost.
However, for some users, ChatGPT Plus represents more than just a membership but serves as a gateway to custom GPT chatbots. Microsoft has also introduced a paid subscription service, Copilot Pro, mirroring ChatGPT Plus with added benefits such as faster performance and priority access to advanced models.
Strategic Moves and User Engagement
OpenAI's decision to offer GPT-4o exclusively to ChatGPT Plus members on mobile reflects a strategic approach to drive user engagement and adoption. By making the 'magical' GPT-4o model accessible through a subscription service, OpenAI aims to capitalize on the widespread use of mobile devices by users.
Overall, the successful launch of GPT-4o has not only boosted ChatGPT's revenue and downloads but has also underscored the growing significance of AI-powered chatbots in the digital landscape.
