Character.ai, an AI app maker, is making waves in the mobile app industry with an impressive 4.2 million monthly active users in the United States, according to Similarweb data. This growth is particularly remarkable considering it was only launched in May 2023 and garnered 1.7 million installs in its first week.
The mobile app market is notorious for its low retention rates, but Character.ai has managed to buck the trend by retaining some of its early adopters and steadily expanding its user base. While ChatGPT, another popular AI provider, still dominates the web space with 22.5 million monthly active users on Android globally, Character.ai’s users seem to prefer the mobile app experience.
Interestingly, Character.ai seems to attract a younger audience, with nearly 60% of its users falling between the ages of 18 and 24. In contrast, ChatGPT’s traffic from this age group has been dwindling, indicating a shift in preferences among younger demographics. This trend is not exclusive to Character.ai and ChatGPT, as other AI providers also struggle to gain traction in this age group.
While ChatGPT experienced a decline in global website visits for three consecutive months, Character.ai’s usage remained stable. Similarweb suggests that Character.ai’s entertainment-focused app design might have played a role in maintaining its usage throughout the summer months. Although Character.ai’s website traffic dipped during this period, it was compensated by the adoption of its iOS and Android apps by mobile users.
However, as the school year resumed, ChatGPT’s traffic in the United States started bouncing back. It is unclear if this resurgence will impact Character.ai’s growth among young people or if the trend of adoption will persist.
Investors seem optimistic about Character.ai’s potential, as indicated by their $150 million in Series A funding. The startup was founded by AI experts who previously worked at Google and developed a powerful language model that drives conversational AI experiences.
Despite Similarweb’s data, Character.ai has not officially commented on these findings, leaving room for speculation about their plans and strategies for expanding their user base in the future. Will Character.ai continue to captivate young users and revolutionize the AI app industry, or will it fade away like many others? Only time will tell.
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