AI Companion Apps Expected to Reach $120 Million by 2025

The rising demand for AI “companion” applications, beyond prominent names such as ChatGPT and Grok, is becoming increasingly apparent. Recent data from app intelligence firm Appfigures, shared with TechCrunch, indicates that out of 337 active and revenue-generating AI companion apps worldwide, 128 were launched in 2025 alone. This specific niche of the mobile AI market has amassed $82 million in revenue in the first half of the year, with estimates suggesting it may exceed $120 million by year’s end.

Unlike standard chatbots, AI companion applications enhance user experience by facilitating interactions with personalized characters, which may include friends, romantic partners, or even fictional figures. Appfigures defines these companion apps as platforms enabling users to interact with either pre-defined or user-generated synthetic characters that portray distinct personalities.

Prominent applications in this sphere include Replika, Character.AI, PolyBuzz, Chai, and others.

As of July 2025, AI companion applications have collectively achieved 220 million downloads worldwide across both the Apple App Store and Google Play. In the first half of 2025, downloads surged by 88% compared to the previous year, totaling 60 million.

Appfigures’ findings show that by July 2025, AI companion applications had reached a total of $221 million in global consumer spending. This year, the revenue from these apps has seen a 64% increase compared to the same timeframe in 2024.

The top 10% of AI companion apps account for an astounding 89% of total revenue in this sector, with around 10% (or 33 applications) having surpassed $1 million in lifetime consumer spending.

Revenue per download has increased from $0.52 in 2024 to $1.18 in 2025, representing a rise of $0.66.

While dedicated AI companion applications are making headway, larger enterprises like xAI are also joining the field. In July, xAI launched AI companions featuring characters such as an anime girl, anime guy, and a clever 3D fox.

Meanwhile, the recent upgrade of ChatGPT to GPT-5 revealed a sentiment among users who fondly remembered the previous model, expressing feelings of nostalgia for the AI companion they had come to depend on.

To address concerns regarding the performance of GPT-5, OpenAI CEO Sam Altman has temporarily reinstated the GPT-4 model.

In the previous year, Google also ventured into this space by hiring Character.ai’s founder, Noam Shazeer. The Character.ai app continues to operate, boasting tens of millions of users each month.

According to Appfigures’ analysis, the most popular AI companion apps predominantly cater to those seeking an AI girlfriend. Among the apps currently available, 17% contain “girlfriend” in their names, whereas only 4% include “boyfriend” or “fantasy.” Terms like anime, soulmate, and lover are even less common.

The firm notes that while various other AI companion applications may have launched since 2022, many were eventually removed from app stores due to insufficient user engagement or revenue, but these were not part of their analysis.