ChatGPT downloads dip as uninstall rates surge, raising questions for OpenAI IPO
Key Points
- Sensor Tower reports ChatGPT uninstall rates rose 132% YoY in April and 413% the month before.
- Monthly active users grew 168% in January but only 78% in April, indicating slowed growth.
- Downloads up 14% YoY, while rival Claude saw an 11‑fold increase over the same period.
- CFO Sarah Friar flagged concerns about OpenAI's upcoming IPO after missed user and revenue targets.
- April uninstall surge coincides with OpenAI's February Pentagon contract, suggesting possible user backlash.
OpenAI's flagship chatbot is seeing its growth slow sharply. Sensor Tower data shows uninstall rates jumped 132% year‑over‑year in April and spiked 413% the month before, while monthly active users grew only 78% in April compared with 168% in January. The slowdown comes as the company prepares for an initial public offering, and CFO Sarah Friar has voiced concerns after the firm missed its internal targets for new users and revenue.
OpenAI’s ChatGPT, once the poster child for explosive AI adoption, is now wrestling with a noticeable slowdown in user growth. Market‑intelligence firm Sensor Tower reported that the app’s uninstall rate rose 132% year‑over‑year in April, with a staggering 413% jump in the preceding month. Those figures suggest that more users are actively deleting the app than ever before.
Despite the churn, the chatbot still commands a sizable audience. Sensor Tower noted that monthly active users grew 168% in January, but that acceleration fell to a 78% increase by April. The contrast highlights a deceleration that could have implications for OpenAI’s financial outlook.
The download trend mirrors the usage data. Over the past few months, ChatGPT’s downloads were up 14% year‑over‑year, a modest gain compared with rival Claude, which logged an 11‑fold surge in the same period. Claude’s rapid ascent underscores how competition is beginning to erode OpenAI’s early‑mover advantage.
OpenAI’s leadership is feeling the pressure. CFO Sarah Friar, according to a Wall Street Journal report, has expressed unease about the company’s upcoming initial public offering. The firm recently missed its own internal targets for both new users and revenue, prompting worries that future computing contracts could become financially untenable if growth does not pick up again.
Industry observers point to OpenAI’s February deal with the Pentagon as a possible catalyst for the recent uninstall spike. Customers may be reacting to concerns about data privacy or the broader implications of government contracts with AI firms. While OpenAI has not commented publicly on the uninstall surge, the timing aligns closely with the contract announcement.
Analysts caution that the slowdown could affect the valuation OpenAI hopes to achieve in an IPO. A shrinking growth rate may pressure the company to demonstrate a clearer path to sustained revenue, especially as competitors like Anthropic’s Claude continue to capture market share.
OpenAI has not released an official statement on the Sensor Tower findings, but the data paints a picture of a product that, while still popular, is no longer expanding at the breakneck pace that defined its early months. The next few quarters will likely determine whether the chatbot can reverse the trend or if the company must pivot its strategy ahead of a public listing.