US Accounted for 41% of AI-Powered Apps’ Q1 2023 Revenues

AI-powered apps have been making waves globally and downloads and revenues of these apps are on the rise. In Q1 2023, AI-powered apps’ 41% revenues came from the US alone as the country leads in AI pivot.

According to a Sensor Tower report, while the US accounted for 21% of downloads of AI-powered apps in the first quarter – the country’s revenue contribution was almost twice.

That’s hardly a surprise as the US variably is the largest revenue contributor to many apps and last year around a third of global app revenues were generated from the US alone.

Meanwhile, in terms of app downloads also, the US was the single biggest market, and around 10 million AI-powered apps were downloaded in the country in the first quarter – which is 550% higher than the previous quarter.

Here it is worth noting that this data is for the first quarter when ChatGPT hadn’t yet launched its official app. In early May, OpenAI released the iOS version of ChatGPT in the US. The company has since made the app available in dozens of countries.

However, Android users continue to wait for the app even as OpenAI has said that the Android version would be “coming soon.”

Wen ChatGPT Android app @OpenAI ?? pic.twitter.com/dTjwa9YX9h

— Janner (@NF_Janner) June 16, 2023

Notably, within six days of its launch, the ChatGPT app surpassed 500,000 downloads. Only former US President Donald Trump’s Truth Social is ahead of ChatGPT and the app had 600,000 downloads in the first six days.

Truth Social has announced a reverse merger with Digital World Acquisition but the two companies have extended the merger timeline.

US Accounts for Over a Fifth of AI-Powered App Downloads

Meanwhile, looking at the downloads of AI-powered apps in Q1 2023, India is a distant second with 6% while Brazil comes third with 5%.

In terms of revenues, the US accounted for $8.3 million in absolute terms while the UK accounted for only 5% – or $958,000 in absolute terms.

Notably, many AI-powered apps are yet to monetize their user base and are instead focusing on boosting their reach.

ChatGPT took the tech world by surprise and became the fastest-growing platform to reach 100 million users within two months and its all-time views crossed 1.8 billion last month.

The valuation of ChatGPT’s parent company OpenAI has also exploded and it was last valued at upto $29 billion in the April funding round.

Microsoft is among the companies that have invested in OpenAI, and has committed an estimated $10 billion to the company spread across multiple years.

AI Stocks Are Popular Among Investors

Meanwhile, the AI boom has helped lift tech stocks this year adding over $4 trillion to the Nasdaq 100’s market cap. Nvidia deserves a special mention here as the stock is up over 175% this year and it has joined the rank of $1 trillion market cap companies.

Listed AI stocks are outperforming the broader markets by a decent margin. Notably, with gains of over 43% Global X Robotics and Artificial Intelligence ETF has delivered returns that are thrice of what the S&P 500 Index has delivered YTD.

That said, currently AI-powered apps haven’t been able to properly monetize the user base.

Nvidia is among the companies that are witnessing a financial windfall from AI as sales of its AI chips have skyrocketed. It reported revenues of $7.19 billion in the quarter that ended in April – a YoY rise of 19%.

Wall Street analysts were expecting the metric at $6.52 billion while the company had forecast revenues of $6.50 billion during the fiscal fourth-quarter earnings call.

Nvidia forecast revenues of $11 billion for the fiscal second quarter which is way above the $7.15 billion that analysts were expecting – largely on account for the demand for its AI chips.

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