Apple collected nearly $900 million in App Store fees from generative AI apps in 2025, according to data from analysis firm AppMagic, covered by The Wall Street Journal ($).
The overwhelming majority of Apple's AI app commission revenue came courtesy of ChatGPT downloads leading to subsequent subscriptions, which alone accounted for around 75 percent of the above total. Elon Musk's Grok app came a distant second, making up just 5 percent of the revenue.
Apple is now said to be on course to earn $1 billion in generative app revenue this year. Given how behind the company is in the AI race, highlighted by the sluggish progress of its enhanced Siri rollout, it's a tidy sum indeed.
Of course, the reason Apple benefits from the popularity of AI apps built by other companies is that the iPhone remains the smartphone market leader. Most AI apps still have to go through its App Store, where Apple takes a commission of up to 30 percent on subscriptions. As the report notes:
"Its Siri chatbot is still weak by modern AI standards. What Apple does have that the other AI players don't is a dominant position making devices. However fancy OpenAI, Google, Anthropic and xAI make their chatbots, iPhones are still a primary way to deliver them to consumers."
The revenue stands in contrast to Apple's relatively modest AI spending compared to rivals like Microsoft, Amazon, and Meta, all of whom have poured tens of billions into AI infrastructure, with little to no profit yet to show for it. Meanwhile, Apple's capital expenditures have remained comparatively flat, thanks to its prioritization of investment in on-device AI over large data centers filled with GPU processors.
The strategy won't enable a more capable Siri, but Apple appears to be happy to lean on Google to provide the necessary AI infrastructure for that. The two companies announced in January that Gemini will power a revamped version of Apple's virtual assistant, coming later this year. The financial terms of the partnership haven't been disclosed, but Bloomberg reported last year that the deal would be around $1 billion annually. That will give Apple access to a 1.2 trillion parameter model that dwarfs its in-house capabilities.
Perhaps the deeper irony is that Google already pays Apple around $20 billion per year to remain the default search engine on iPhones, so now money is flowing in the other direction too, albeit at a drastically lower rate.
Still, some investors see the App Store approach as a more viable long-term strategy. Charles Rinehart, chief investment officer of Johnson Asset Management, told WSJ that if Apple "can act as a toll road for providers of AI, then they'll probably end up looking good long-term."
