AI app Character.ai is catching up to ChatGPT in the US
Character.ai, the AI app maker that lets users design their own AI characters, is catching up to ChatGPT in terms of mobile app usage. A recent analysis by market intelligence firm Similarweb reveals that the iOS and Android apps for the a16z-backed Character.ai now have 4.2 million monthly active users in the U.S., compared with nearly 6 million monthly U.S. actives for ChatGPT's mobile apps.
Notable Growth for Character.ai
Following Character.ai's May 2023 launch, the startup quickly gained traction with over 1.7 million installs in its first week. While installs do not directly translate to active users, Character.ai has managed to retain a portion of its early adopters, showcasing steady growth since its debut.
Demographic Insights
Character.ai is appealing to a younger demographic compared to ChatGPT and other AI apps. Its audience primarily consists of 18- to 24-year-olds, making up nearly 60% of its user base. This demographic preference has remained consistent, even as traffic to ChatGPT's website declined in recent months.
When compared globally on Android, ChatGPT still leads with 22.5 million monthly active users, whereas Character.ai follows closely with 5.27 million monthly active users.
Future Prospects
With a substantial $150 million in Series A funding and a valuation of $1 billion, Character.ai is poised for further expansion. The app's focus on entertainment sets it apart from competitors that serve as educational tools or research assistants.
Character.ai's founders, Noam Shazeer and Daniel De Freitas, bring extensive AI expertise to the table, having previously worked on groundbreaking projects like LaMDA. These credentials have attracted investors and positioned Character.ai for continued success.
Industry Trends and Challenges
As ChatGPT aims to regain momentum after a decline in website visits, Character.ai's performance remains steady, supported by its mobile app usage. The future will reveal whether Character.ai maintains its appeal among young users or faces challenges as the AI landscape evolves.
