A recent report from a16z highlights significant developments in the artificial intelligence sector, particularly the rise of Grok and Google’s advancements in generative AI technologies. Grok 4 released in July 2025 and achieved a jaw-dropping 40% net increase in Grok’s userbase. This milestone was a monumental accomplishment for the AI platform. Google jumped up four spots in their ranking on generative AI consumer-facing web products. This outstanding increase was driven by its new features such as Gemini, AI Studio, NotebookLM and Google Labs.
Grok’s ascension is nothing short of astonishing. From having no standalone application by end of 2024, to then having over 20 million monthly active users in their new standalone application in less than two years. It was a powerful fourth place on the web and mobile — a testament to its increasing power. ChatGPT still holds the title of most popular mobile app. It has almost one-twentieth the number of monthly active users that Grok claims to have.
Yet the a16z report focuses on the increasing variety of uses across the AI spectrum. It shines a light on challengers such as Claude, DeepAI, JanitorAI, Pixelcut and Suno. These companies showcase different niches across the AI ecosystem, from broad AI applications, companionship, image editing, to music creation. Perplexity and Claude, in particular, showed growth month over month, establishing a stronger foothold in the emerging market.
The report pinpoints 14 of those companies listed on top AI products. This includes well-known names like ChatGPT, Perplexity, Poe, Character AI, Midjourney, Leonardo, Veed, Cutout, Eleven Labs, Photoroom, Gamma, Quillbot, Civitai, and HuggingFace. For the first time this year, Lovable and Replit joined the ranks of the main list. They did not qualify in a16z’s prior report from March.
Maybe the most troubling development is the trend of AI companies built in China becoming successful on the world stage. Seven other companies including DeepSeek, Hailuo, Kling, SeaArt, Cutout Pro, Manus and Monica are quickly emerging as key players on the international stage. Although they continue to primarily serve a Chinese audience, their reach is increasing globally. Together, each of these firms run a Chinese website and get at least 75% of their business traffic from China.
On a few AI platforms, we observed significant performance variability. DeepSeek has lost a big chunk of its value, losing more than 40% from its all-time high in February 2025. This sudden shift serves as a reminder of the instability in the AI market as consumer preferences rapidly change and develop.
Grok’s ascent is especially remarkable given its meteoric user adoption, emerging reputation, and development in an ever-crowded and cut-throat market. The platform’s creative features and audience engagement strategies have undeniably connected with an audience hungry for the next big AI thing. ChatGPT is still one of the most popular mobile apps, but it’s definitely starting to feel the heat from ascendent challengers. Platforms such as Gemini are quickly catching up and are poised to become the second most-used application.
The generative AI market is changing quickly. New players continually emerge onto the scene, while established companies rush to pivot into new spaces to remain relevant. As the report indicates, companies must remain vigilant and responsive to user needs and technological advancements to thrive in this competitive landscape.