The world of conversational AI is heating up, and market intelligence suggests that Character.ai is closing the gap with ChatGPT in terms of mobile app usage in the U.S. According to Similarweb, Character.ai boasts 4.2 million monthly active users in the U.S., compared to ChatGPT’s 6 million, as of the latest data.
Interestingly, Character.ai is carving out a niche among younger audiences. Almost 60% of its web traffic comes from the 18-24 age group, a significant chunk when compared to ChatGPT's 27%. This trend remains consistent, even as other AI apps like Perplexity.ai, Midjourney, Anthropic, and Bard trail with far lower percentages among this demographic.
ChatGPT saw a slight decline in global website visits and the amount of time users spent on the platform over the summer. Similarweb speculates that Character.ai managed to maintain its numbers due to its entertainment focus, as opposed to ChatGPT’s more utilitarian approach. However, with the resumption of the school year, ChatGPT has seen a slight uptick in website traffic.
Character.ai's emphasis on mobile interactions appears to be paying off. Although ChatGPT still dominates on the web, the rapid adoption of Character.ai's mobile app indicates a trend toward personalized, on-the-go AI interactions.
Backed by $150 million in Series A funding, Character.ai has substantial runway to continue its growth. Founded by Noam Shazeer and Daniel De Freitas, previously part of Google's LaMDA team, the startup brings a robust pedigree to the conversational AI market.
While it remains to be seen if Character.ai will maintain its momentum or become another tech fad, its current trajectory poses some interesting questions about the future of AI. Will the younger generation’s preference for Character.ai force other players to adapt their strategies, or will ChatGPT’s utility-based approach ensure its continued dominance? Only time will tell. Keep an eye on this space for more updates.
