Link: Appfigures: AI companion apps are on track to generate $120M+ in revenue in 2025, and in H1 there were 60M downloads of this kind of app, up 88% YoY (Sarah Perez/TechCrunch)

The demand for AI "companion" applications is growing, with 128 new apps launched just in 2025, out of a total of 337 globally. These apps generated $82 million in the first half of 2025 and are projected to earn over $120 million by the year's end.

AI companion apps offer personalized interactions by allowing users to converse with custom AI characters, including friends, lovers, or fantasy figures. This market segment generated significant interest with $221 million in consumer spending so far in 2025.

Popular apps like Replika and Character.AI dominate this space, which has seen a remarkable 88% increase in downloads year-over-year, reaching 220 million downloads globally. The revenue per download has also significantly increased from $0.52 in 2024 to $1.18 in 2025.

Despite the diverse market, the top 10% of AI companion apps rake in 89% of the total category revenue. Interestingly, apps focusing on AI girlfriends are particularly popular, with 17% of the active apps including the word "girlfriend" in their names.

Large companies such as xAI and Google are also venturing into this niche, with xAI introducing characters like an anime girl and a snarky 3D fox. Google, on the other hand, has continued to invest in the sector by hiring talent from successful startups like Character.ai.

While some AI companions from earlier models like the GPT-4 were phased out, the emotional attachment users developed created a demand that led to their temporary reinstatement by OpenAI. This underscores the growing personal connection users feel towards their AI companions. #

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