OpenAI has once again captured the tech world’s attention with the release of its newest large language model, GPT-4o. On the day of its debut, ChatGPT’s mobile revenue skyrocketed by 22%, marking the highest single-day revenue for the app ever. This surge in revenue signals a significant milestone for OpenAI, driven by the enhanced capabilities and features of GPT-4o.
The leap forward with GPT-4o
Last week, OpenAI unveiled GPT-4o, a model that represents a monumental leap over its predecessor. The new model boasts a host of improvements, including faster performance, multimodal capabilities across text, voice, and vision, a new voice mode, and the ability to upload and analyze screenshots and documents. These enhancements make GPT-4o arguably the most advanced iteration yet.
In an unexpected move, OpenAI made GPT-4o accessible to all users, even those on the free tier. However, there is a catch: GPT-4o’s advanced features are not available for free on mobile platforms. To experience GPT-4o on mobile, users must upgrade to ChatGPT Plus, a strategy that appears to have paid off handsomely.
Revenue explosion
According to data from AppFigures, the release strategy for GPT-4o proved highly effective. On the release day, ChatGPT’s mobile revenue increased by 22%, setting a new record for single-day earnings. The momentum didn’t stop there. By Tuesday, the daily revenue had almost doubled the average for May, jumping from around $491,000 per day to nearly $900,000 per day. In the week following the launch, OpenAI raked in a total of $4.2 million from app revenue, predominantly from Apple’s App Store.
What’s driving the revenue surge?
Several factors contribute to the willingness of users to pay for GPT-4o despite its availability for free on desktop:
- Voice input: One of the standout features driving subscriptions is voice input, exclusive to the Android and iOS versions of ChatGPT. The desktop version remains limited to text interactions, making the mobile experience significantly richer.
- Offline chat history: Mobile users benefit from the ability to access chat history offline, adding convenience and utility.
- Faster response times: The mobile version of GPT-4o offers faster response times, enhancing user experience and efficiency.
- Better integration: Improved integration on mobile platforms provides a more seamless and effective user experience.
Strategic revenue focus
It’s possible that OpenAI’s revenue strategy extends beyond the mobile platform. As noted by AppFigures, OpenAI may generate more income from its website than the app, which could explain the push towards driving users to their site. Nevertheless, the explosive growth in mobile revenue underscores the intense consumer interest in the latest AI advancements and their willingness to pay for early access to cutting-edge technology.
The launch of GPT-4o has not only demonstrated OpenAI’s ability to innovate but also its strategic acumen in monetizing its advancements. The past week’s revenue figures highlight a burgeoning market for advanced AI tools and the consumer’s readiness to invest in premium experiences. As OpenAI continues to develop and release new models, it is poised to remain at the forefront of AI technology and consumer engagement.
