ChatGPT's dominance in the AI assistant market has dipped below 50%. While still leading, rivals like Gemini and Claude are rapidly closing the gap. This shift signals a more competitive landscape. User engagement and distribution channels are now key battlegrounds. The market is expanding, offering opportunities for multiple players.

The mobile app tracking firm Sensor Tower’s “State of AI” report found that while ChatGPT continues to have the largest user base, Anthropic’s app is earning more money per user.

ChatGPT just hit 1 billion users, but Sensor Tower says Claude earns 1.5x more revenue per user, $2.76 versus $1.74, and converts more to paying plans.