The Boom In Non-Game App Revenue And What's Driving It – Olivia Moore, Andreessen Horowitz

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Feb 27, 2026

Olivia Moore, AI partner at Andreessen Horowitz who invests in consumer and SMB AI startups, joins to unpack why non-game app revenue is surging. She discusses AI workflows and vibe coding boosting movies, social, and utilities. She covers ChatGPT’s pricing effect on consumer willingness to pay and how hybrid monetization captures value across user segments.

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INSIGHT

AI Workflows Power Broad Category Growth

AI workflows are boosting productivity across app categories, letting teams bake in features and lower content costs.
Olivia gives short dramas as an example where AI-generated or edited content lowers production cost and increases marketing spend.

INSIGHT

Generative AI Grew Fast But Is Still Early On Mobile

Generative AI apps grew ~3x year-over-year but remain early on mobile beyond a few general assistants.
Olivia notes ChatGPT, Claude and others dominate now, yet only ChatGPT cracks top-10 saturation for any age group.

INSIGHT

ChatGPT Reset Consumer Price Expectations

Consumer willingness to pay has materially shifted since 2023, with ChatGPT anchoring higher monthly expectations.
Olivia says $20/month became a new reference and usage-based pricing creates whales paying hundreds or thousands per month.

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On the podcast: the tailwinds driving a boom in non-game app revenue, how vibe coding and AI workflows are fueling growth in categories that have nothing to do with AI, and why people predicting the "death of apps" have never been more wrong.

This conversation is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report. Each episode in this series will explore one crucial topic and share actionable insights from top subscription app operators.

Top Takeaways:

🚀 The app revenue boom isn't just about AI apps
Non-game in-app purchases grew 21% year over year, but only $3.5 billion came from generative AI. Billions more flowed into short dramas, social media, utilities, entertainment, and other categories.

💰 ChatGPT helped reset what consumers will pay
Pre-AI, most consumer subscriptions topped out around $60 a year. ChatGPT normalized $20 a month, and usage-based pricing is pushing some users into hundreds monthly. AI apps monetize at 2x pre-AI ARPU.

🎯 Vertical, opinionated products beat thin AI wrappers
Build deep products around a specific use case bigger platforms won't prioritize. The litmus test: your product should get better, not fear for its life, when the underlying models improve.

About Olivia Moore:

🚀 AI Partner at Andreessen Horowitz (a16z), a venture capital firm that backs bold entrepreneurs building the future through technology.

👋 LinkedIn

👋 @omooretweets on X

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Jacob Eiting - @jeiting
RevenueCat - @RevenueCat
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Episode Highlights:
[0:00] Introduction to Olivia Moore, AI Partner at Andreessen Horowitz
[1:05] Olivia discusses the role of AI in transforming startup growth strategies
[2:10] The importance of aligning product development with user needs and market demands
[3:15] How Olivia helps portfolio companies leverage AI to scale effectively
[4:25] The challenge of balancing innovation with user experience and feedback
[5:50] Olivia shares insights on identifying and seizing AI-driven market opportunities
[7:00] Navigating the complexities of integrating AI solutions into existing business models
[8:20] The importance of long-term growth strategies over quick wins
[9:35] Olivia talks about the evolving role of AI in user retention and engagement
[10:40] Discussing the ethical considerations of AI implementation in growth initiatives
[11:55] Olivia’s thoughts on the future of AI in the startup ecosystem
[12:30] Closing thoughts on driving innovation and growth through AI