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It took three and a half long years, but it finally happened: ChatGPT just slipped from its absolute monopoly on the AI world.

Yes, you read that correctly. The AI chatbot that basically invented what everyone thinks of as an AI assistant, is officially fighting for its majority share of the market for the very first time in history. And it seems to be loosing that battle.

According to a new State of AI Report dropped by analytics firm Sensor Tower and reported by Techcrunch, ChatGPT's global market share slid down to 46.4% by the end of May 2026.

Honey, this is a massive deal. For context, ChatGPT comfortably held over 50% of the entire market as recently as January. So in just a few months, the crown officially slipped off OpenAI's head!

But hold on, before we start mourning OpenAI's dominant era, let's look at the actual receipts:

  • The Billion-User Club: ChatGPT still boasts over 1.1 billion monthly active users.

  • History Maker: It literally just became the fastest application in human history to cross that 1 billion user milestone.

So no, the chatbot isn’t dying. It’s just finally learning that it has to share the throne with some very hungry competitors.

👀 So, Who Stole the Crown Jewels?

The missing percentage points didn't just vanish into thin air. Two major rivals are eating OpenAI's lunch right now:

  • Google’s Gemini: Now sitting pretty at 27.7% market share with a casual 662 million monthly users. A massive chunk of that growth is powered by the fact that Google is aggressively baking Gemini into the apps and Android phones people already use every single day. Clever? Absolutely. Organic growth? Highly debatable.

  • Anthropic’s Claude: Holding down 10.3% market share with 245 million monthly users. But here’s the real tea that should make investors lean in: a mind-blowing 13% of Claude's users are paying subscribers. That’s the highest paid-conversion rate in the entire industry!

As for the rest of the dramatic field? Trendy names like Grok, Perplexity, DeepSeek, and Meta AI are currently sitting at the kids' table, scraping by with under 5% of the market share each.

If you think the competition is wild, look at the absolute mountain of cash floating around.

The report notes that consumers are on track to spend a staggering $4.2 billion on AI apps in the first half of 2026 alone. To put that into perspective, users only spent $1.83 billion in the first half of 2025. The money is flowing like water, and the battle lines are officially drawn.

The ultimate takeaway: the AI race is no longer just about who got out of the gate first. It’s officially about who can keep their users from wandering off, and more importantly, who can actually convince them to open their wallets. And right now? The leaderboard is shifting fast.

P.S. We go even deeper on YouTube.

So go over there, hit Subscribe, hit the notification bell and come hang with us where the real conversation happens! 

Here’s yesterday’s breakdown: 

Here's what we have for you today

📈 Anthropic vs. the Trump Administration: Why Being Called "Too Dangerous" Is Actually Great for Business

Getting banned by the government is usually an absolute death sentence for business. Unless you are Anthropic, apparently.

Anthropic has been having the exact kind of month that would make most corporate executives sweat right through their hoodies. But instead of tanking their brand, the chaos is making them look like the absolute coolest kids at the AI lunch table.

🕵️‍♂️ The Original Beef: The "Supply-Chain Risk"

To understand how unhinged this situation is, we have to look back at the original drama from earlier this year.

Back in March, the Trump administration picked a fight with Anthropic, demanding they hand over their tech for full mass surveillance of American citizens and autonomous weaponry. Anthropic's CEO, Dario Amodei, stood his ground and said absolutely not.

The immediate retaliation?

  • The White House officially slapped Anthropic with a terrifying label, declaring the company a national "supply-chain risk."

  • Instead of scaring off enterprise clients, the opposite happened. Corporate America looked at the warning, decided that an AI too independent for the federal government must be top-tier tech, and immediately started buying it in droves! Even celebrities like Katy Perry jumped in.

Fast forward to right now, and the federal feud has reached a boiling point. The government doubled down on their panic by dropping a sudden export control directive.

This historic order explicitly banned non-Americans, including visa holders and Anthropic’s own brilliant foreign-born engineers, from accessing their bleeding-edge models: Claude Mythos 5 and its public-facing twin, Claude Fable 5.

Because checking everyone’s passport before an API call is an administrative nightmare, Anthropic had to panic-yank both models off the global market overnight. Fable 5 barely survived three full days out in the wild before getting completely hidden away.

The official White House excuse was a routine compliance issue. But the real behind-the-scenes chatter? Hackers had allegedly figured out how to bypass Fable 5's safety guardrails to access the raw power of Mythos 5 underneath. And since Mythos 5 is so terrifyingly good at sniffing out software security exploits, Anthropic’s own doomsday marketing essentially convinced the government that they had built a digital weapon.

But Here’s Where the Entire Story Gets Deliciously, Beautifully Ironic.

According to brand-new corporate spending data from fintech platform Ramp, which tracks over 70,000 real-world businesses, Anthropic’s share of business AI subscriptions officially hit 41% in May. That means they officially nudged past OpenAI’s 39.5% for the first time in history!

Ramp’s lead economist, Ara Kharazian, broke it down for TechCrunch point-blank, explaining that this entire government controversy is actually a massive net positive for the company.

"Anthropic's best month on record, as far as business adoption, was the month that the Department of Defense labeled them a supply-chain risk," Kharazian revealed. "There's a lot of aura that comes with your model specifically being named too dangerous to use."

It turns out that enterprise businesses absolutely love the software equivalent of a big, red "DO NOT OPEN" sticker.

💰 The Trillion-Dollar Bottom Line

Nobody could have planned a marketing campaign this brilliant. The ultimate receipts show that Anthropic is absolutely thriving in the chaos:

  • Massive Funding: They just crossed an astronomical $65 billion in fresh funding.

  • The Valuation: Their market value is currently floating at a near-trillion-dollar valuation.

  • Going Public: They have officially filed confidential IPO paperwork to go public.

  • Real Profit: They just reported their first-ever profitable quarter.

While Fable 5 and Mythos 5 are locked away in government time-out, corporate teams are happily spending millions on the Claude Opus 4.8 models, which remain completely online and available for day-to-day work.

So yeah, being labeled "too powerful to exist" might just be the greatest accidental advertisement in tech history.

Oh, and don’t forget to meet us on YouTube so you can get our full take on this later today!

8 levels of context maturity in AI-native engineering

AI shows up in 60% of engineering work. But only about a fifth of it can be handed off without someone babysitting the output. That’s because agents are missing context.

This 8-stage context maturity model gives a real answer on why you haven't seen meaningful productivity gains for all the tokens burned.

- Why more MCPs provides agents access but not understanding

- What it takes to deploy agents you can trust without supervision

- How a context layer solves for quality, efficiency and cost

🧱 Around The AI Block

🤖 AI Workout Of The Day: How To Write a Book With AI as Your Creative Partner

Writing a book can feel overwhelming, but what if you had a creative partner who never gets tired, always shows up, and helps bring your vision to life one chapter at a time?

This prompt transforms AI into your collaborative writing partner. Whether you’re crafting a fantasy epic, a gritty thriller, or a heartfelt coming-of-age story, this co-author approach helps you shape your entire novel from outlining the plot to writing prose in your exact tone.

Here’s How to Use This Prompt Effectively

  • Start with a clear vision: Fill in the blanks in the prompt with your genre, title, character details, and themes.

  • Know your audience. Mention whether this is for adults, teens, or kids—so the tone, vocabulary, and pacing align.

  • Choose a chapter count that fits your ideal story length (e.g., 10 for novellas, 20–30 for full novels).

  • Ask for what you need. Want help with voice, dialogue, description, or worldbuilding in later chapters? Just say the word.

  • Treat it like a real collaboration. You can revise, expand, or redirect at any stage.

💡 Prompts to try:

Act as my co-author for a [insert genre] novel titled “[Insert Title]”. The story centers on [describe main character(s)] and explores themes such as [insert themes, e.g., redemption, betrayal, identity, etc.].

Start by creating a full story outline broken down into [insert number] chapters, using a traditional story arc:

 . Setup
 . Rising Action
 . Conflict
 . Climax
 . Resolution

Once the outline is ready, draft Chapter 1 in full prose. The tone, pacing, and style should match that of a novel written for a [insert target audience, e.g., young adult, middle grade, adult literary fiction] readership.

If more details are needed before proceeding, ask follow-up questions. Otherwise, dive right in like a true co-author.

Also don’t over-explain, let the story unfold naturally through scenes and action.  

Is this your AI Workout of the Week (WoW)? Cast your vote!

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