Apple Set to Top $1 Billion From AI Apps on the App Store

Apple is generating significant revenue from the artificial intelligence boom without directly competing in the generative AI race. The company is on track to surpass $1 billion in AI-related revenue this year by collecting App Store commissions from popular third-party chatbot apps.



According to data from AppMagic cited by The Wall Street Journal, generative AI applications paid Apple nearly $900 million in App Store fees during 2025. This revenue comes from Apple's standard commission structure, which takes a 30 percent cut of first-year subscription fees and 15 percent in subsequent years, though rates can vary by country. Monthly revenue from these apps grew steadily last year, climbing from roughly $35 million in January to a peak of $101 million by August before dipping slightly as downloads stabilized.


The vast majority of this income is driven by a single application. ChatGPT subscriptions account for roughly 75 percent of the AI revenue Apple collects through its storefront. The recently expanded ChatGPT tiers allow users to purchase access directly through the iOS app, and OpenAI does not currently offer financial incentives or discounts for users who bypass the App Store to subscribe directly through its website. Elon Musk's xAI follows at a distant second, representing about 5 percent of the App Store's AI revenue with its Grok chatbot.

This revenue stream is helping pad Apple's Services division while giving the company more time to develop its own AI strategy. Investors have pointed to this model as a way for Apple to benefit from AI growth without the heavy capital spending required to build large-scale models. Competitors like Microsoft, Google, and Meta are currently spending hundreds of billions of dollars on custom chips and data centers to train frontier models. Apple has largely avoided this infrastructure buildout, focusing instead on using personal data stored on user devices alongside its own chips to power on-device intelligence features.

That extra time is needed. Apple's internal AI efforts have faced significant hurdles, most notably with Siri. The digital assistant is still built on older architecture that struggles with complex research, content generation, or maintaining context across conversations compared to newer AI systems. These development bottlenecks follow last year's announcement that AI chief John Giannandrea would step down from his leadership role. To bridge the capability gap, Apple confirmed earlier this year that it has partnered with Google to use Gemini models to power a new version of Siri slated for release later this year.

While Apple commands the mobile distribution channel, AI developers are actively looking for ways to bypass the smartphone entirely. OpenAI is currently working with former Apple design chief Jony Ive to build dedicated consumer AI hardware that would reduce reliance on the iPhone and the associated App Store fees. Musk has also faced rumors about building a dedicated smartphone for his ventures, though he recently denied that xAI is developing a phone. Until those alternative devices manage to capture mainstream adoption, the iPhone remains a primary vehicle for delivering generative AI to the public.