Character.ai nears ChatGPT in mobile app usage among U.S. youth

Character.ai, the AI app that enables users to design their own AI characters, is rapidly gaining popularity in mobile app usage in the United States, according to market intelligence firm Similarweb.

The iOS and Android apps for Character.ai now have 4.2 million monthly active users in the U.S., inching closer to ChatGPT's 6 million monthly U.S. active users. This growth follows Character.ai's May 2023 launch when it reached 1.7 million installs in its first week.

While Character.ai still behind ChatGPT on the web, its younger demographic and mobile-focused approach are key factors contributing to its success.

Compared to ChatGPT Character.ai attracts a much younger audience: nearly 60% of users are in the 18 to 24 age group. ChatGPT, on the other hand, has seen a decline in this age group: from 30% in April to 27% in July. Other artificial intelligence providers also can't match Character.ai's appeal to younger users.

ChatGPT's website traffic has been down for three consecutive months, but is now showing signs of recovery, especially as the school year resumes.

Still Character.ai has significant growth potential, thanks to its substantial $150 million Series A funding and valuation at $1 billion. Founded by AI experts Noam Shazeer and Daniel De Freitas, the startup's unique approach and end-to-end platform have attracted investors' attention, positioning it as a potential challenger establish its place in the AI space.