Character.AI ARR Hits $30M+

Character.AI, a platform enabling users to create and interact with AI-driven characters, has achieved an annual recurring revenue (ARR) of $30M+M. The company has experienced consistent revenue growth since its launch in 2021, reflecting its expanding user base and increasing adoption across various industries. Character.AI’s primary service allows users to converse with character AI chatbots based on fictional characters or real people, providing a unique and engaging experience for its users.

In 2024, Character.AI had over 20 million monthly active users, with users spending an average of 75 minutes daily on the platform. The company has also introduced a subscription plan, Character.ai+, priced at $9.99 per month, offering features such as skipping waiting rooms, fast messaging and responses, and access to an exclusion channel with faster support. This subscription model has contributed to the company’s revenue growth, with the paid user base growing significantly in recent months.

Character.AI has raised $150 million in a Series A funding round led by Andreessen Horowitz, valuing the company at $1 billion. The company has also entered into a non-exclusive agreement with Google to use its technology. Despite facing challenges, including legal issues and concerns over user safety, Character.AI continues to innovate and expand its offerings, positioning itself as a leader in the AI chatbot space.