UpTrajectory Review
The latest report from Sensor Tower reveals that ChatGPT's dominance in the AI assistant market has waned, dropping below 50% for the first time since its launch. This decline is attributed to the rise of competitors like Google's Gemini and Anthropic's Claude, which have gained traction among users, particularly in the U.S. market. The report also highlights that OpenAI's recent partnership with the U.S. Department of Defense may have contributed to user dissatisfaction, prompting some to switch to alternatives.
For small business owners, this shift in market dynamics is crucial. As competition heats up, operators should consider diversifying their AI tools to leverage the strengths of emerging platforms. While ChatGPT remains a powerful tool, the growing capabilities of competitors like Claude could offer unique advantages, especially in areas where ethical concerns are paramount. Keeping an eye on user sentiment and market trends will be essential for making informed decisions about AI integration in business operations.
“Sensor Tower attributes this shift, in part, to OpenAI’s deal with the U.S. Department of Defense.” — Fast Company
Takeaway: Diversify your AI tools to stay competitive as market dynamics shift.
From the original item — Fast Company:
OpenAI ushered in the current AI era with the release of ChatGPT, but a lot of competitors have emerged since that day in November 2022.
Now, ChatGPT’s share of the global AI assistant market has fallen to below 50% for the first time. According to the newly released “State of AI 2026” report from data analytics firm Sensor Tower, ChatGPT’s fall came in March, hitting just 46% by May.
Sensor Tower measures market share through a “true audience” metric, which looks at usage across desktop, mobile apps, and the mobile web.
The news comes just over a week after OpenAI announced it has taken the first step toward pursuing an IPO. The company has yet to disclose a stock listing date.
In contrast to ChatGPT, Sensor Tower reports that Google’s Gemini and Anthropic’s Claude had 28% and 10% of the market share, respectively.
The “global” data evaluates 25 markets, with some looking even more favorable for ChatGPT’s competitors. Take the United States, where Claude’s market share rose from just 5% in December 2025 to 14% in May.
Sensor Tower attributes this shift, in part, to OpenAI’s deal with the U.S. Department of Defense.
Anthropic initially held an agreement but refused to allow Claude to be used for things like mass surveillance and autonomous lethality. OpenAI claimed its late February deal had the same “red lines,” but it’s also allowing the Pentagon to use ChatGPT for “all lawful purposes.”
Some ChatGPT users jumped ship for Claude in response to the news, Sensor Tower reports.
Fast Company has reached out to OpenAI for comment. We will update this post if we hear back.
Despite the decline in market share, ChatGPT in May became the fastest mobile app to reach one billion users.
Across all platforms, ChatGPT had 1.11 billion users worldwide, still a substantial lead over Gemini’s 662 million users and Claude’s 245 million users.
There appears to be plenty of AI use to go around. Sensor Tower projects global users will spend 36 billion hours on generative AI apps over the first half of 2026. That figure is more than double the 17.2 billion hours spent from January to June 2025.