GPT Store Falls Short, Apple Steps In to Launch AI App Store
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App stores are undoubtedly the most iconic product of the mobile internet era, perfectly embodying the concept of platform economics. Beyond the various Android channels in the domestic market, Apple and Google alone rake in billions annually from the App Store and Google Play Store. The profitability of app stores is now a well-established notion, which explains why Tesla, known for smart cars, is also considering launching an in-vehicle app store. If smart cars can have their own app stores, AI-Native applications naturally deserve one too.
Recently, Ben Reitzes, a director at the renowned Wall Street consulting firm Melius Research, revealed in an interview with CNBC that Apple might unveil a brand-new AI app store at the upcoming WWDC in June. This app store is expected to feature AI applications from major developers, offering a wide range of choices for both developers and users. He believes Apple will not only provide its own AI services but is also currently in discussions with other companies to acquire more AI applications, laying the groundwork for its AI app store. To strengthen his argument, Ben Reitzes specifically cited how Steve Jobs, when launching the iTunes Store, persuaded major record labels like Sony, Universal, and EMI to agree to integrate copyrighted music into streaming platforms and allow users to download songs for "99 cents per track." Back then, Apple, not yet a global phenomenon, managed to convince the struggling music industry. Now, with Apple at its peak, it naturally holds immense appeal for the AI industry, which still lacks a clear business model.
If Apple truly creates an AI app store, it could be a significant boon for the entire AI industry. In fact, AI app stores already exist. Earlier this year, when OpenAI's GPT Store launched, it was hailed by outsiders as the "App Store of the AI era." On its first day, users had already created over 1,000 GPTs, and within 72 hours, that number exceeded 2,000. The influx of developers allowed GPTs to achieve in just a few weeks what took traditional apps years to accomplish. However, the good times didn't last long. Within just a few weeks, the GPT Store was inundated with a flood of AI dating GPTs, despite OpenAI's explicit prohibition on GPTs that simulate romantic partners or engage in other regulated activities. Soon after, the GPT Store became a breeding ground for infringing content, with users discovering numerous GPTs suspected of copyright violations, such as unauthorized "Iron Man GPT" and "Mickey Mouse GPT" generating Disney and Marvel character content, even digital replicas of Elon Musk, as well as GPTs openly claiming to bypass plagiarism detection.
By the end of March, reports from The Information indicated that developers felt OpenAI had essentially abandoned the GPT Store, with even the company's employees questioning why the app store was launched in the first place. The report highlighted widespread negative sentiment among AI developers, whose main frustrations centered on OpenAI's failure to provide user analytics tools for the GPT Store and its refusal to allow developers to charge for their applications. In fact, user analytics tools are extremely important for developers. They help track data such as user satisfaction, engagement, and churn rates, and also assist in creating user profiles. As a result, many developers are forced to turn to social platforms like Reddit and X to share and market their GPTs and gather feedback. Not to mention the restriction on charging for GPTs, which essentially means OpenAI is "exploiting" developers' creativity and labor.
In contrast, despite the criticism the App Store has faced in recent years, it must be acknowledged that, from its inception, Apple enabled developers worldwide to showcase their technology and creativity on the App Store, reaping both wealth and fame. A prime example is Rovio, the developer of Angry Birds. The App Store is a model of "Business to Developer," where Apple provides developers with an integrated development environment, Xcode, which includes a suite of tools and frameworks, and addresses payment security through in-app purchases and a stable revenue-sharing model. In addition, the App Store provides developers with a promotional platform. Through its editorial recommendation mechanism, capable developers can showcase their work to users worldwide. The App Store has solved long-standing challenges for developers, including promotion, payment, and anti-piracy issues, which is why it has established the app store economy and revolutionized the software sales model.
App developers back then were not much different from today's AI application developers. What they want is simply a stage to showcase their talents and monetize them.
Developers had high hopes for the GPT Store, hoping OpenAI could replicate Apple's App Store success story. However, the reality of the past three months has proven that OpenAI currently lacks the capability to operate an app store effectively. Yet, developers' need for a reliable distribution and promotion platform hasn't disappeared. Therefore, Apple's potential launch of an AI app store now would be a timely move. Although the App Store's "Apple tax" has drawn criticism from some developers who believe Apple's contribution doesn't justify its returns, the current landscape of AI-native applications reveals most products are still operating at a loss, unable to generate positive cash flow for developers. When profitability remains elusive, discussions about revenue sharing naturally take a backseat. Therefore, if Apple is willing to invest heavily in promoting its AI App Store while guaranteeing developer earnings, there appears to be no fundamental reason why this platform couldn't achieve success.