ChatGPT's market share has fallen to 46%, while competitors like Gemini and Claude gain ground, signaling a shift in user preferences.
ChatGPT's Popularity Wanes
ChatGPT, once the dominant player in the AI assistant market, saw its market share fall to 46% by the end of May 2026, marking the first time it dipped below 50%. This decline, noted in Sensor Tower's State of AI 2026 report, comes as competitors like Google's Gemini and Claude gain ground, holding 28% and 10% market shares, respectively.
Despite the drop in market share, ChatGPT continues to thrive, surpassing 1 billion monthly users, a record that makes it the fastest app to reach this milestone, outpacing platforms like TikTok and Instagram. OpenAI is transitioning ChatGPT into a superapp that incorporates shopping features and various agents, coinciding with its ongoing IPO process.
However, ChatGPT's position as the leading AI application is eroding. A report indicated that its share of web traffic fell from 77.6% to 53.7% over the past year, highlighting a shift in consumer preferences as more alternatives become available.
Competitors on the Rise
Google's Gemini has gained popularity, attributed to its effective distribution strategy. Google reported that Gemini reached 750 million monthly users in February, later increasing to over 900 million, although independent tracking by Sensor Tower recorded 662 million users. Regardless of the exact figures, the trend is clear: Gemini's integration with Android and other Google services enhances its reach.
Claude has also seen significant growth, tripling its market share in the U.S. from 5% to 14% since December. This increase is linked to its recent actions and partnerships, which have bolstered its credibility in the AI space.
Interestingly, Sensor Tower noted a 200% spike in ChatGPT uninstalls in the U.S. around March 9, indicating brand trust is becoming a critical factor in user retention.
Crypto Enthusiasts Prefer Grok
Among AI assistants, Grok stands out for its appeal to cryptocurrency traders. Users of Grok are about four times more likely to engage in crypto trading than the average user, a significant distinction compared to ChatGPT, which has less traction in the crypto community. Grok's integration within the X platform allows it to access live posts and trending discussions, making it particularly attractive to crypto traders.
Grok's features mirror those of ChatGPT in several ways, including chat capabilities and content generation. Claude also ranks well in the market, showing strong financial metrics with an average revenue per U.S. mobile user of $2.76, surpassing ChatGPT's $1.74. Additionally, 13% of Claude's users have subscribed, reflecting a robust conversion rate.
As OpenAI prepares for an IPO, it faces the challenge of maintaining its audience's preferences amid increasing competition in the AI market.
