Archive — US — techcrunch
AI companion apps on track to pull in $120M in 2025
AI companion apps are experiencing significant growth, projected to generate over $120 million in 2025. With 337 revenue-generating apps, 128 launched this year alone, driving $82 million in H1. These apps allow interactions with custom characters and have seen 220 million downloads globally. Leading apps like Replika and Character.AI dominate, as consumer spending reaches $221 million, reflecting a 64% revenue increase from 2024.
Key points
- Demand for AI companion apps is increasing, with 128 new apps launched in 2025.
- First half of 2025 revenue is $82 million, with projections to surpass $120 million by year-end.
- AI companion apps allow users to interact with customizable characters.
- 220 million downloads globally of AI companion apps as of July 2025, with an 88% year-over-year increase.
- Consumer spending reached $221 million; 64% increase from the same period in 2024.
- The top 10% of AI companion apps generate 89% of the overall revenue.
Why it matters
- AI-driven interactions are becoming mainstream as users seek personalized experiences.
- Similar trends are observed in larger tech companies like xAI and Google entering the market.
- Advancements in chatbots, such as ChatGPT's transition to GPT-5, impact user engagement with AI companions.
- The rise of AI companions aligns with broader IT trends in personalization, user engagement, and interactive AI.
The growth of AI companion apps signifies a shift towards personalized AI interactions, with significant revenue potential and user engagement trends, reflecting broader IT advancements in customization and social connectivity.