ChatGPT faces rising competition as Gemini and Grok gain ground, says new AI report
A16z’s latest consumer AI report reveals ChatGPT remains the global leader, but Google’s Gemini and xAI’s Grok are quickly narrowing the gap.
- Aug 28, 2025,
- Updated Aug 28, 2025 3:04 AM IST
ChatGPT’s dominance in the consumer AI market is under growing pressure from Google’s Gemini and Elon Musk’s xAI chatbot Grok, according to a new report by venture capital firm Andreessen Horowitz (a16z). The findings highlight two and a half years of shifting consumer adoption of AI tools, with newer entrants gaining traction against established players.
The report identifies 14 companies that have consistently ranked among the most used AI products, including ChatGPT, Perplexity, Character AI, Midjourney, ElevenLabs and Hugging Face. These span a variety of applications such as general assistance, image and video editing, voice generation, productivity and model hosting.
For the first time, Google made significant headway, securing four spots on the list with Gemini, AI Studio, NotebookLM and Google Labs. The firm noted: “These products now have their own separate domains, allowing their growth to be tracked independently.”
Gemini has emerged as ChatGPT’s closest rival. It is the No. 2 AI app on both mobile and web, though it has almost half as many monthly active users as OpenAI’s flagship. On Android, however, Gemini commands nearly 90% of its active user base.
Grok, meanwhile, ranked fourth on the web and 23rd on mobile, despite having no stand-alone app until late 2024. It now boasts more than 20 million monthly active users, with a 40% surge following the release of Grok 4 in July. Meta AI also appeared on the list, but lagged behind at No. 46 on the web and failed to break into the top mobile rankings after facing backlash over privacy concerns.
Chinese developers also feature prominently. ByteDance’s Doubao ranked No. 4 on mobile, while Moonshot AI’s Kimi and Alibaba’s Quark made the web top 20. In total, 22 of the top 50 mobile AI apps originated in China, although only three are primarily used domestically.
The report also highlights rising startups such as Replit and Lovable, which gained traction for their AI-powered coding tools, and notes that app store crackdowns on ChatGPT clones have allowed more original products to grow.
Despite mounting competition, ChatGPT continues to lead globally. But as Andreessen Horowitz points out, the rapid growth of Gemini and Grok signals a market that is becoming increasingly fragmented, with multiple players vying for user attention.
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ChatGPT’s dominance in the consumer AI market is under growing pressure from Google’s Gemini and Elon Musk’s xAI chatbot Grok, according to a new report by venture capital firm Andreessen Horowitz (a16z). The findings highlight two and a half years of shifting consumer adoption of AI tools, with newer entrants gaining traction against established players.
The report identifies 14 companies that have consistently ranked among the most used AI products, including ChatGPT, Perplexity, Character AI, Midjourney, ElevenLabs and Hugging Face. These span a variety of applications such as general assistance, image and video editing, voice generation, productivity and model hosting.
For the first time, Google made significant headway, securing four spots on the list with Gemini, AI Studio, NotebookLM and Google Labs. The firm noted: “These products now have their own separate domains, allowing their growth to be tracked independently.”
Gemini has emerged as ChatGPT’s closest rival. It is the No. 2 AI app on both mobile and web, though it has almost half as many monthly active users as OpenAI’s flagship. On Android, however, Gemini commands nearly 90% of its active user base.
Grok, meanwhile, ranked fourth on the web and 23rd on mobile, despite having no stand-alone app until late 2024. It now boasts more than 20 million monthly active users, with a 40% surge following the release of Grok 4 in July. Meta AI also appeared on the list, but lagged behind at No. 46 on the web and failed to break into the top mobile rankings after facing backlash over privacy concerns.
Chinese developers also feature prominently. ByteDance’s Doubao ranked No. 4 on mobile, while Moonshot AI’s Kimi and Alibaba’s Quark made the web top 20. In total, 22 of the top 50 mobile AI apps originated in China, although only three are primarily used domestically.
The report also highlights rising startups such as Replit and Lovable, which gained traction for their AI-powered coding tools, and notes that app store crackdowns on ChatGPT clones have allowed more original products to grow.
Despite mounting competition, ChatGPT continues to lead globally. But as Andreessen Horowitz points out, the rapid growth of Gemini and Grok signals a market that is becoming increasingly fragmented, with multiple players vying for user attention.
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