The artificial intelligence landscape is witnessing a significant shift, with OpenAI’s ChatGPT, once the undisputed leader, showing signs of declining dominance, according to a recent report by website traffic analytics firm Similarweb.
The report highlights that rival platforms such as Google’s Gemini and Elon Musk’s xAI Grok are steadily gaining market share, signaling intensifying competition and evolving user preferences in the fast-moving AI sector.
From Market Dominance to Growing Competition
Just a year ago, ChatGPT commanded a staggering 87.2% of all website traffic in the AI space, dwarfing competitors. Google’s Gemini accounted for only 5.4%, while platforms like Perplexity, Claude, and Copilot shared roughly 5% collectively.
However, the trend began to change mid-year as users increasingly explored alternative AI platforms. ChatGPT’s traffic share dipped below 80%, while new entrants like DeepSeek quickly captured over 5% of the market. Gemini also began a steady climb toward double-digit traffic share.
In January, DeepSeek launched a low-cost, open-source AI model that undercut the pricing of OpenAI’s large language models. The move shook US tech stocks and global markets, triggering a $593 billion drop in the market value of Nvidia overnight. Meanwhile, Grok, which debuted in November 2023, further intensified competition.
Current Market Scenario
As of December 5, 2025, ChatGPT still leads the market but its share has slipped to 68%. Gemini has risen to second place with a 20% share, while Grok has nearly tripled its user base in six months, signaling a strong upward trajectory.
Advancements Fueling the AI Race
The AI chatbot sector continues to evolve rapidly:
- xAI’s Grok 4.1: Elon Musk’s platform recently launched Grok 4.1, emphasizing creative, emotional, and collaborative interactions, with improved understanding of nuanced user intent.
- ChatGPT GPT-5.1: OpenAI rolled out two new variants, GPT-5.1 Instant and GPT-5.1 Thinking, allowing users to customize tone and style for a more personalized AI experience.
- Gemini Nano Banana: Google’s Gemini introduced the viral Nano Banana feature, which quickly became an online trend.
The Takeaway
The AI market is no longer a one-horse race. While ChatGPT remains the leader, competitors like Gemini and Grok are eroding its dominance, driven by new features, pricing strategies, and innovative product launches. Analysts suggest that user experience, personalization, and accessibility will be key to market leadership in the coming years.
