AI Companion Apps on Track to Generate $120M in 2025 Amid Surge in Popularity and Spending

AI companion apps are rapidly gaining traction, with projections indicating they could generate over $120 million in revenue by the end of 2025. According to new data from app intelligence firm Appfigures, the mobile AI companion market has already pulled in $82 million in the first half of the year, driven by a surge in both downloads and consumer spending. Of the 337 active and revenue-generating AI companion apps globally, 128 were launched in 2025 alone. These apps differ from general-purpose chatbots by offering personalized, anthropomorphized interactions with synthetic characters—such as friends, romantic partners, fantasy figures, or even original user-created personas—designed to simulate real personalities and emotional connections. Leading apps in the space include Replika, Character.AI, PolyBuzz, and Chai. As of July 2025, these apps have been downloaded 220 million times worldwide. Downloads rose 88% year-over-year in the first half of the year, reaching 60 million. Consumer spending on the category has reached $221 million globally, a 64% increase compared to the same period in 2024. The top 10% of apps account for 89% of total revenue, highlighting a highly concentrated market. Around 33 apps—about 10% of the total—have surpassed $1 million in lifetime revenue. Revenue per download has also climbed significantly, rising from $0.52 in 2024 to $1.18 in 2025, an increase of $0.66. While standalone apps dominate the current landscape, major tech players are entering the space. In July, xAI launched AI companions within its Grok app, including an anime-style girl and boy, as well as a sarcastic 3D fox. Meanwhile, OpenAI’s rollout of GPT-5 sparked user backlash, with many expressing emotional attachment to the previous model, GPT-4o. In response, CEO Sam Altman temporarily reinstated the 4o model to address user concerns. Google also entered the market last year by hiring Noam Shazeer, the founder of Character.AI. Though the original Character.AI app remains active and continues to attract tens of millions of monthly users, the competitive landscape is intensifying. Appfigures’ analysis reveals a clear trend: apps with “girlfriend” in the name are the most popular, with 17% of active apps including the term—compared to just 4% mentioning “boyfriend” or “fantasy.” Other common keywords include “anime,” “soulmate,” and “lover.” The data also notes that many AI companion apps launched since 2022 were later removed from app stores due to low performance in downloads or revenue. These defunct apps were excluded from the analysis. As emotional AI interactions grow more sophisticated and widespread, the companion app market is emerging as a major frontier in consumer AI—blending technology, psychology, and personal connection in ways that go far beyond simple utility.