ChatGPT is experiencing a significant slowdown in growth with uninstalls surging 132 percent year-over-year in April, according to market intelligence firm Sensor Tower. While monthly active user growth reached 168 percent in January, it decelerated sharply to 78 percent by April, with users either uninstalling the app or switching to rival chatbots. The uninstall rate spiked 413 percent year-over-year following OpenAI's February Pentagon deal. Despite maintaining a substantially larger user base than competitors, the declining metrics raise concerns about OpenAI's planned IPO prospects.
ChatGPT's Declining User Engagement and Growth Metrics
- ▪ChatGPT still has a substantially larger user base than rival chatbots, according to Sensor Tower
- ▪ChatGPT increased its monthly active users by 168 percent in January, according to Sensor Tower
- ▪Sensor Tower reported that ChatGPT's user base growth is slowing down
- ▪ChatGPT experienced a 132 percent increase in uninstalls year over year in April, according to Sensor Tower
Impact of Pentagon Deal on User Retention
- ▪OpenAI reached a deal with the Pentagon in February
- ▪ChatGPT's uninstall rate was up 413 percent year-over-year in the month following OpenAI's deal with the Pentagon in February
Perspective of OpenAI
- ▪OpenAI's IPO valuation may be affected by ChatGPT's declining download and retention metrics
- ▪ChatGPT's slowing user growth could potentially impact OpenAI's planned IPO prospects
Perspective of Rival chatbot companies
- ▪Users are switching from ChatGPT to rival chatbots, according to market intelligence reports
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