OpenAI’s ChatGPT, once hailed as a game-changing technology, is facing a slowdown, according to recent data. Deutsche Bank’s analysis showed a revenue plateau for the app in Europe, signaling a dip in user engagement. Despite the hype surrounding AI, investment in its infrastructure continues to surge.
The trend seems to be global. Apptopia, a third-party app intelligence firm, reported that ChatGPT’s mobile app usage stalled in early September. Furthermore, the app’s downloads fell by over eight percent month-over-month, according to the data.
In the U.S., user engagement is also decreasing. Apptopia revealed a 22.5 percent drop in the average time spent per daily active user since July. This suggests that the decline is not just about users refining their prompts.
While ChatGPT remains popular, these shifts indicate the app’s growth may not be as explosive as previously claimed. The data does not include desktop usage, so the situation may differ across platforms.
Despite millions still downloading the app, OpenAI is grappling with a slowing growth narrative. This, coupled with concerns over an AI bubble, has sparked investor caution. Even insiders are questioning the long-term viability of large language models like ChatGPT.
Users are also growing disillusioned with the technology, especially in terms of “hallucinations.” The recent launch of GPT-5, designed to improve AI safety, has been met with disappointment, as studies suggest it performs worse than GPT-4o.
OpenAI’s push for new revenue streams, including ads and monetizing its Sora app, highlights the urgency. Despite these efforts, ChatGPT remains central to the company’s financial health.
While OpenAI claims 800 million users, only five percent have subscribed, suggesting difficulties in convincing users to pay $20 per month. Competing platforms, like Google’s Gemini, may be attracting those seeking alternatives.
To remain relevant, OpenAI must not only find ways to boost user retention but also incentivize paid subscriptions. The company’s latest move to allow “mature” apps could be a sign of its desperation.