Character.ai vs. ChatGPT: The AI App Showdown
In the rapidly evolving landscape of AI apps, there’s an unexpected contender gaining ground on the established giant. Character.ai, an AI app that allows users to craft their own AI characters, is making waves in the US, giving ChatGPT a run for its money.
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Character.ai’s Impressive Growth
According to a recent analysis by market intelligence firm Similarweb, Character.ai’s iOS and Android apps have seen a surge in popularity, boasting 4.2 million monthly active users in the US. This surge in usage comes just months after Character.ai’s May 2023 launch, during which it recorded over 1.7 million installs within its first week. While installs don’t guarantee active users, Character.ai’s ability to retain and grow its user base is noteworthy.
In the world of mobile apps, retaining users is a formidable challenge, with the average 30-day retention rate hovering at just 3% to 4%. Furthermore, uninstall rates skyrocketed to over 40% after the initial 30 days. Character.ai’s ability to maintain a substantial user base indicates its appeal and resilience in the competitive market.
ChatGPT’s Dominance on the Web
Despite Character.ai’s growth in the mobile app arena, ChatGPT still maintains a strong presence on the web. This could be attributed to the preference of many Character.ai users who favor building and interacting with their AI chatbots on personal mobile devices rather than through a website.
Globally, Android data reveals that ChatGPT continues to outpace Character.ai on mobile devices, with 22.5 million monthly active users for ChatGPT compared to 5.27 million for Character.ai.
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Character.ai’s Youthful Appeal
One intriguing aspect of Character.ai’s rise is its appeal to a younger demographic. Nearly 60% of Character.ai’s web audience falls within the 18- to 24-year-old age bracket, a statistic that remained consistent even as ChatGPT’s web traffic declined over the summer months.
In contrast, ChatGPT’s web traffic saw a drop in the 18- to 24-year-old demographic, from 30% in April to just 27% in July. Similar data suggests that other AI providers, such as Perplexity.ai, Midjourney, Anthropic, and Bard, also struggle to capture the 18- to 24-year-old audience, with percentages ranging from 18.46% to 25.3%.
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ChatGPT’s Challenges
ChatGPT, while still dominant, faces its own set of challenges. For three consecutive months, its global website visits experienced a decline, with a 3.2% drop to 1.43 billion in August. The time users spend on ChatGPT’s website also decreased from an average of 8.7 minutes in March to 7 minutes by August.
However, Similarweb suggests that Character.ai’s focus on entertainment may have contributed to its stable usage over the summer. While Character.ai’s website traffic did dip slightly during this period, mobile app adoption compensated for the loss.
ChatGPT’s fortunes appear to be improving as the school year resumes, with a 0.4% increase in website visits in August. Unique visitors also rose by 3% month-over-month in the US and 0.3% worldwide, following drops in June and July.
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Character.ai’s Bright Future
With a substantial $150 million in Series A funding and a valuation of $1 billion, Character.ai has ample resources to expand its user base. The startup’s founders, Noam Shazeer and Daniel De Freitas are renowned AI experts who previously led a team at Google responsible for creating LaMDA, a language model that enhances conversational AI experiences.
Character.ai’s success hinges on whether it can maintain its appeal among young users and avoid becoming just another AI fad. As of now, Character.ai remains tight-lipped about Similarweb’s data, but the app’s future trajectory promises an exciting rivalry with ChatGPT.
Conclusion
In the competitive arena of AI apps, Character.ai is emerging as a formidable challenger to ChatGPT, particularly in the US market. While ChatGPT maintains its dominance on the web and globally, Character.ai’s appeal to a younger demographic and its robust growth in mobile app usage suggest that the battle is far from over. With ample funding and a dedicated team, Character.ai is poised for an exciting future in the world of AI applications.
FAQ & Answers
Q1: What is Character.ai?
A1: Character.ai is an AI app that allows users to design their own AI characters.
Q2: How many monthly active users does Character.ai have in the US?
A2: Character.ai boasts 4.2 million monthly active users in the US.
Q3: How does Character.ai’s growth compare to ChatGPT?
A3: Character.ai is catching up to ChatGPT in terms of mobile app usage in the US.
Q4: What is the retention rate for mobile apps?
A4: The average retention rate for mobile apps is 3% to 4% after 30 days.
Q5: Why does Character.ai appeal to younger users?
A5: Character.ai attracts a younger demographic due to its engaging features and character-building options.
Q6: Who are the founders of Character.ai?
A6: Character.ai was founded by AI experts Noam Shazeer and Daniel De Freitas.
Q7: How much funding did Character.ai receive in its Series A round?
A7: Character.ai secured $150 million in Series A funding.
Q8: What is ChatGPT’s website traffic trend?
A8: ChatGPT’s website traffic experienced a decline but is now showing signs of recovery.
Q9: How does Character.ai differ from ChatGPT?
A9: Character.ai focuses on allowing users to create their AI characters, while ChatGPT offers a broader range of AI capabilities.
Q10: What does the future hold for Character.ai?
A10: Character.ai’s future is promising, with potential for continued growth and competition with ChatGPT.
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