From: Li rumor
a16z [1] is a well-known investment institution in Silicon Valley. They recently released their TOP50 GenAI products [2] based on monthly views and gave some insights. As we approach the end of 2023, today we will take a look at the current AIGC competition landscape.
Note: The ranking is mainly based on web page traffic statistics from SimilarWeb and app traffic statistics from Sensor Tower. So Midjourney’s ranking here is a bit low, and there are many more on discord.
Most products are made in this wave
80% are new products released this year.
There are only 5 products from major manufacturers: Bard (Google), Poe (Quora), QuillBot (Course Hero), Pixlr (123RF), and Clipchamp (Microsoft).
48% of the products have not received financing, which shows that some products can be launched quickly with very little capital.
The 50 companies were divided into three approaches: Those who trained their own models received an average of 98 million U.S. dollars in investment; those who fine-tuned other people's models received 20 million U.S. dollars in financing; and those who built shells received 9 million U.S. dollars in financing.
ChatGPT accounts for the majority of traffic
ChatGPT has 1.6 billion visits every month, accounting for 60% of the total traffic of the TOP50, and is the 24th ranked website in the world.
On the mobile side, CharacterAI is the strongest competitor. DAU is comparable to ChatGPT, but it has better retention.
Companion and tool products are on the rise
In addition to ChatGPT, Google's Bard and Quora's Poe are also general LLMs, both in the top 5, accounting for a total of 68% of the traffic.
CharacterAI and content production tools (such as Midjourney and ElevenLabs) are also on the rise, with image generation accounting for 41% of traffic, writing tools 26%, and video generation 8%.
It is worth noting that ModelHub products (Civitai and HuggingFace for CV models) are both in the top 10, and their main function is to allow users to download models and run them themselves. The download traffic is so large that it is difficult to imagine what level the application has reached . .
There are still many opportunities for entrepreneurs
Comparing the traffic gap between the first and second place in different categories, many are within 2 times, and there are still opportunities to catch up.
Products in some specific fields are also becoming more general. For example, Leonardo, which specializes in game image generation, has continued to grow despite the rise of Midjourney.
There are many users this time and it’s nice
In the past few years, as the growth of the Internet has peaked, new platform-level opportunities have disappeared, and the cost of acquiring customers has become higher and higher. GenAI products are basically made up of free users from Twitter, Reddit, and Discord, and only 2% is paid traffic.
This generation of users is very willing to pay, and 90% of the products have already made money through the subscription model. The average selling price is 21 dollars/month (still quite expensive).
There are also opportunities on mobile
Nowadays, most products are on the web page, because for small start-up teams, the web page is the easiest to run, and the user base is also large enough.
Three products are exceptions: PhotoRoom, CharacterAI, and Speechify.
According to statistics, Internet users currently spend an average of 36 minutes longer on the mobile terminal than on the web, so GenAI’s products on the mobile terminal are still worth looking forward to.
References
[1]
Andreessen Horowitz: https://a16z.com/
[2]How Are Consumers Using Generative AI?: https://a16z.com/how-are-consumers-using-generative-ai/
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