Character.ai, an AI app allowing users to create their own AI characters, has gained significant traction since its May 2023 launch. It currently boasts 4.2 million monthly active users on its iOS and Android apps in the U.S., approaching the 6 million users of ChatGPT’s mobile apps. While installs don’t directly translate to active users, Character.ai has managed to retain early adopters and grow its usage.

On the web, ChatGPT still holds a lead over Character.ai, possibly because the latter’s users prefer mobile interaction. Globally, ChatGPT maintains a substantial lead with 22.5 million monthly active users compared to Character.ai’s 5.27 million.

Notably, Character.ai appeals to a younger demographic, with nearly 60% of its web audience falling in the 18-24 age bracket. In contrast, ChatGPT saw a decrease in this age group’s traffic over the summer.

Compared to other AI providers, Character.ai has a significantly higher adoption rate among younger demographics. For instance, Perplexity.ai, Midjourney, Anthropic, and Bard have percentages ranging from 18.46% to 25.3%.

ChatGPT experienced a decline in global website visits for several months, but this trend has started to reverse, particularly with the resumption of the school year. Character.ai, backed by a substantial $150 million Series A funding, still has room for growth.

The startup’s founders, Noam Shazeer and Daniel De Freitas, are respected figures in the field of AI, having previously led a team at Google that developed the LaMDA language model. They have received praise for their pioneering work in AI over nearly two decades.

Summarized by ChatGPT