The niche market for AI “companion” apps is expanding rapidly, generating $82 million in the first half of 2025 and projected to exceed $120 million by year-end, according to data from app intelligence firm Appfigures. The category includes 337 active, revenue-generating apps worldwide, with 128 launching this year alone.
Unlike general-purpose chatbots such as ChatGPT or Grok, companion apps simulate personal relationships through custom characters, from romantic partners to fantasy figures. Popular names in the space include Replika, Character.AI, PolyBuzz, and Chai.
Downloads have climbed sharply. By July 2025, the apps had been downloaded 220 million times globally, with 60 million in the first half of the year, an 88% increase from 2024. Consumer spending reached $221 million in lifetime revenue by July, up 64% year-over-year. Revenue per download has more than doubled to $1.18 from $0.52 last year.
The top 10% of apps account for 89% of the market’s revenue, with about 33 titles surpassing $1 million in lifetime consumer spending. A notable share of demand centers on romantic simulations: 17% of active apps feature “girlfriend” in their names, compared with 4% for “boyfriend” and smaller shares for “fantasy,” “soulmate,” or “lover.”
The space has also drawn interest from major tech companies. xAI’s Grok introduced anime-themed companions and a 3D fox in July. OpenAI, responding to user pushback over GPT-5, reinstated its earlier 4o model. Google moved in last year by hiring Character.AI founder Noam Shazeer, while the app retains tens of millions of monthly active users.
Appfigures noted that many AI companion apps launched since 2022 have been removed from app stores after failing to gain traction, though these were excluded from its analysis.
