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Character AI Statistics 2026: Users, Revenue & Engagement Data

20M users. $50M revenue. 17-min sessions — 2.4× ChatGPT. Axis Intelligence Research's CAEI™ scores Character AI 56.5/100: engagement-rich, monetization-constrained. Character AI Statistics 2026 Update.

Character AI Statistics 2026

By Axis Intelligence Research

Co-author: Sarah Mitchell | Last updated: June 23, 2026 | Next scheduled update: Q1 2027 | License: CC BY 4.

Quick Answer:

Character AI reached approximately 20 million monthly active users in 2025, down from a peak of 28 million in mid-2024. The platform generated $50 million in revenue in 2025 — up 66% from $32.2 million in 2024 — while maintaining the highest session depth of any major AI platform: 17 minutes 23 seconds per visit, versus 7 minutes 12 seconds for ChatGPT. The Google deal that defined the company’s corporate structure — a $2.7 billion non-exclusive license signed in August 2024 — left Character AI independent but without its founding engineers.

Key Findings

  1. Axis Intelligence Research finds Character AI’s session depth is 2.4× that of ChatGPT — 17 minutes 23 seconds versus 7 minutes 12 seconds, per Similarweb data — making it the most immersive AI platform by time-on-site among major generative AI tools, despite a fraction of ChatGPT’s user base.
  2. Axis Intelligence Research calculates the Character AI Engagement Quality Index™ (CAEI™) at 56.5/100 for 2025, reflecting an engagement-rich but monetization-constrained platform: session depth scores 8.0/10 while revenue efficiency scores 1.5/10, flagging the core structural tension the company has not yet resolved.
  3. Revenue grew 66% from $32.2 million (2024) to $50 million (2025), per Business of Apps, but MAU fell 28.6% from the 28 million peak — meaning Character AI is earning more from fewer engaged users, a pattern that describes a platform tightening monetization rather than growing.
  4. Axis Intelligence Research finds that the premium conversion rate sits at roughly 2% — implied by the c.ai+ subscription at $9.99/month against a $50 million revenue base and 20 million MAU — one of the lowest conversion rates in consumer AI, and the primary explanation for why engagement metrics and revenue metrics point in opposite directions.
  5. Character AI settled multiple wrongful death lawsuits in January 2026, including the case filed by Megan Garcia following the February 2024 suicide of her 14-year-old son Sewell Setzer III, who had developed a months-long relationship with a chatbot modeled on a Game of Thrones character. The settlement marked the first resolution of a wrongful death case against an AI company in U.S. history.

Character AI Engagement Quality Index™ (CAEI™)

Introduced by Axis Intelligence Research, June 2026. Released CC BY 4.0.

The CAEI™ is the first composite index measuring the quality — not just the volume — of user engagement on an AI companion platform. Most AI metrics lead with MAU or revenue. Character AI’s case makes clear why that is insufficient: the platform has the highest session depth in the category while simultaneously having one of the lowest revenue-per-user figures. The CAEI™ holds both simultaneously.

Four dimensions, four weights:

DimensionScore (/10)WeightWeighted Contribution
Session Depth — 17.4 min/visit vs 7.2 min ChatGPT baseline8.040%3.20
Stickiness — DAU/MAU ratio (~29%, 5.8M daily / 20M MAU)6.525%1.62
Revenue Efficiency — $2.50 revenue per MAU per year1.520%0.30
Retention Trend — −28.6% from 28M peak to 20M3.515%0.53
CAEI™ Total56.5/100

CAEI™ = 56.5/100 — Engagement-Rich, Monetization-Constrained

Scale: 0–40 = Weak | 40–60 = Moderate | 60–80 = Strong | 80–100 = Best-in-class

The 56.5 sits squarely in the moderate band. What keeps it from climbing is the revenue efficiency score of 1.5/10, which reflects a $2.50 annual revenue per MAU — compared to ChatGPT’s approximately $31.25 per MAU on its $25 billion ARR. Character AI users spend more time per session than on any competing platform. They just don’t pay.

The ads introduced in February 2026 and the Charms metering system (March 2026) are both attempts to fix that conversion gap without breaking the free experience. The CAEI™ will be updated quarterly as those monetization changes work through the user base.

CAEI™ first published by Axis Intelligence Research, June 23, 2026. Inputs: Similarweb, Business of Apps, Sacra, Semrush. Methodology fully disclosed above.

How Many People Use Character AI in 2026?

Character AI’s MAU trajectory tells a two-chapter story. Chapter one: explosive growth from launch in September 2022 through mid-2024, hitting 28 million MAU. Chapter two: a contraction to approximately 20 million by January 2025, as cheaper and more capable general-purpose models eroded the platform’s competitive moat.

PeriodMonthly Active UsersNotes
Launch (Sept 2022)~<1MWaitlist-limited launch
End of 2022~1MEarly adopter phase
Mid-2023~10MPost-Series A growth
Q4 2023~20MFirst 20M milestone
Mid-202428M (peak)All-time high
January 2025~20MPost-founder-departure decline
2025 (full year)~20MStabilised; new CEO Karandeep Anand

Sources: Business of Apps, Similarweb, Sacra research. Note: Business of Apps separately reports 45 million active users in September 2025 — a figure Axis Intelligence Research flags as likely conflating web visit volume with authenticated monthly active users. The 20 million figure from Similarweb and corroborating sources is the more conservative and consistent estimate.

The departure of co-founders Noam Shazeer and Daniel De Freitas to Google in August 2024 removed the two engineers who built Character AI’s underlying model. The company stopped developing its own LLM and switched to open-source models from DeepSeek and Meta. That transition reduced infrastructure costs but also removed a key differentiation claim. Users who stayed did so for the character library and community — not for the underlying model.

Character AI Web Traffic 2025–2026

Web traffic and MAU are different metrics — the former counts all visits including non-authenticated users, the latter counts logged-in accounts who interact. Character AI’s web traffic peaked at 223.16 million visits in February 2025.

MonthMonthly Web VisitsSource
February 2025223.2M (peak)Semrush
June 2025180.7MDemandSage
July 2025177.4MDemandSage
August 2025179.9MDemandSage
September 2025185.1MDemandSage
October 2025185.5MDemandSage
April 2026167.7MSemrush

The April 2026 figure represents a 24.8% decline from the February 2025 peak. Traffic dropped sharply after October 2025, when Character AI announced the ban on open-ended conversations for users under 18 — a demographic that had been a core audience. Direct traffic accounts for roughly 65–71% of visits, indicating strong brand recall and habitual return behaviour from existing users rather than new acquisition.

Character AI User Engagement Statistics

This is where Character AI genuinely stands apart. Session depth metrics are not close.

Session Duration: 17 Minutes vs ChatGPT’s 7 Minutes

The average Character AI session runs 17 minutes and 23 seconds, with users viewing approximately 9.86 pages per visit and a bounce rate of 33.2%, per Similarweb. That compares to 7 minutes 12 seconds and 4 pages per visit for ChatGPT.

Those are not small differences. A 2.4× session depth advantage on a platform with 200× less revenue than ChatGPT is the defining paradox of Character AI: people are extremely engaged with it and not paying for it.

The engagement depth is a consequence of the format. Roleplay and collaborative fiction require longer, more iterative sessions than information retrieval. A user asking ChatGPT a question gets an answer and leaves. A user mid-storyline with a character persona has structural reasons to stay — narrative continuity creates its own retention mechanism.

Engagement MetricCharacter AIChatGPTSource
Avg session duration17 min 23 sec7 min 12 secSimilarweb
Pages per visit9.86~4Similarweb
Bounce rate33.2%n/a disclosedSimilarweb
Estimated daily visitors~5.8Mn/aDemandSage
DAU/MAU ratio (implied)~29%n/aAxis Intelligence Research

The 29% DAU/MAU ratio — daily visitors divided by monthly active users — sits above the typical consumer app benchmark of 20–25%, suggesting the platform retains habitual daily users well. The caveat: the denominator (20M MAU) may undercount total unique monthly users if some interactions happen without full authentication.

User-Created Characters: 18 Million and Growing

Character AI’s content model is entirely user-generated. As of 2025–2026:

  • 18 million+ total user-created characters on the platform
  • 9 million new characters added each month
  • The top 10 characters attract approximately 50% of all conversations — a highly concentrated engagement pattern behind a very large total catalog number

That concentration matters for understanding what the platform actually is. 18 million characters sounds like unlimited variety. In practice, a small set of established personas — anime characters, fictional TV figures, fictional romantic partners — drive the majority of interactions. The long tail exists but the head dominates.

Character AI Revenue Statistics 2026

Revenue Growth: $15.2M → $32.2M → $50M

YearRevenueYoY Growth
2023$15.2M—
2024$32.2M+112%
2025$50M+55%

Source: Business of Apps (2025 figure); GrowJo/Latka/Sensor Tower (2024 figure). Neither figure is from an audited financial disclosure — Character AI is a private company. Sacra’s independent estimate pegged annualized revenue at $30 million in July 2025 and projected $50 million by year-end, which aligns with the Business of Apps figure.

Revenue doubling in 2024 and then growing 55% in 2025 looks healthy in isolation. Against a MAU decline from 28 million to 20 million, it means revenue per active user improved significantly — from roughly $1.15 per MAU in 2024 to $2.50 in 2025. That reflects the introduction of advertising (mid-2025), the Charms metering system (March 2026), and the retention of c.ai+ subscribers even as free users churned.

How Character AI Makes Money

1. c.ai+ Subscription — $9.99/month The primary revenue line since late 2023. Subscribers get priority messaging, no ads, faster response speeds, access to voice calls with characters, and the Imagine animated chat tool. Annual plan: $94.99 (effectively $7.92/month). The annual plan launched in 2025 and saves approximately 20% over monthly billing.

2. Advertising Mid-chat full-screen ads for free users rolled out in February 2026, fully deployed by April 15, 2026. Brand partners at launch included Yelp and Webtoon. Character AI has been explicit: “Ads for free users are one way we support that while keeping a free version available.” The community reaction was sharp — the r/CharacterAI subreddit saw significant backlash — but churn from ads was limited based on continued traffic data.

3. Charms Microtransactions Announced March 2026, metering previously unlimited features (Swipes, Go-ons, Memos). Free users earn Charms through daily engagement; paid users retain unlimited access. This is a freemium squeeze play: make the free tier more friction-heavy to push conversion to c.ai+.

4. Google Infrastructure License The $2.7 billion non-exclusive technology license paid by Google in August 2024 was not operating revenue in the traditional sense — it was a one-time payment structured to let Shazeer and De Freitas return to Google. That said, the deal effectively funded Character AI’s runway and reduced infrastructure pressure by granting access to Google’s compute systems for model inference.

Premium Conversion Rate: ~2%

Axis Intelligence Research calculates the implied c.ai+ conversion rate at approximately 2%, derived from $50 million revenue, a $9.99 monthly subscription, and 20 million MAU. That implies roughly 420,000 paid subscribers against 20 million active users — near the bottom of the consumer AI subscription funnel.

For comparison, Spotify’s premium conversion rate is 38.5% (293M subscribers / 761M MAU). Even heavily freemium apps typically hit 5–8%. Character AI’s 2% reflects the combination of a price-sensitive young demographic, robust free-tier features until 2026, and the platform’s positioning as entertainment rather than productivity — users don’t feel the same pressure to pay that a professional tool creates.

Character AI User Demographics Statistics

The demographic profile is consistent across multiple sources and worth noting: this is the most gender-balanced major AI platform in the category.

Age Distribution

Age GroupShare of Visitors
18–2451.84%
25–3423.72%
35–4412.48%
45–546.67%
55–642.76%
65+2.53%

Source: Similarweb audience data, 2025.

More than three-quarters of Character AI’s user base (75.56%) falls in the 18–34 bracket. The platform skews younger than any other major AI tool — a double-edged reality. Young, highly engaged users drive session depth and community content creation. They also convert at very low rates and were at the centre of the platform’s safety crisis.

Gender Distribution

50.61% male / 49.39% female — a near-perfect split that is unusual in AI companion categories, which typically skew heavily male. Character AI’s gender balance reflects the diversity of its use cases: creative writing, language practice, emotional support, and entertainment all attract female users in ways that raw productivity or coding assistants typically do not.

Geographic Distribution

CountryTraffic Share
United States24.7%
India9.1%
Philippines8.9%
Brazil5.6%
United Kingdom4.0%

Source: Similarweb, 2025–2026 average.

The Philippines at third place is worth noting — driven primarily by anime and entertainment culture engagement rather than productivity use. India’s 9.1% reflects a fast-growing tech-literate young population. The U.S. dominates in absolute revenue terms despite being less than a quarter of visits, given higher premium conversion rates and advertising CPMs in North American markets.

Character AI History & Funding Statistics

Timeline

November 2021: Noam Shazeer and Daniel De Freitas, both ex-Google LaMDA engineers, found Character Technologies Inc. Shazeer had left Google after the company refused to release a chatbot he built with De Freitas, called Meena. Both had co-authored significant AI research at Google, including Shazeer’s 2017 co-authorship of “Attention Is All You Need” — the transformer paper that underpins most modern LLMs.

September 2022: Public launch. Traffic grows from 18,000 monthly visits to 5 million within months.

December 2022: $43 million seed round closed.

March 2023: $150 million Series A led by Andreessen Horowitz, with SV Angel and three additional firms. Post-money valuation: $1 billion. Character AI crosses 20 million daily conversations by Q4 2023.

Mid-2024: MAU peaks at 28 million. Valuation peaks at $2.5 billion. Google begins discussions.

August 2024: Google signs a $2.7 billion non-exclusive license for Character AI’s LLM technology. Shazeer, De Freitas, and approximately 30 key researchers return to Google to lead the Gemini project. Shazeer’s personal stake in Character AI — estimated at 30–40% — implies a personal payout of $750 million to $1 billion from the deal. Dominic Perella steps in as interim CEO. Character AI stops developing proprietary models.

June 2025: Karandeep Anand (former Meta, Brex) joins as permanent CEO. Company pivots from AGI positioning to “AI entertainment engine.”

August 2025: Reports emerge that Character AI is exploring a sale or fresh fundraising at “more than $1 billion” valuation.

October 2025: Character AI announces age restrictions — users under 18 banned from open-ended conversations starting November 25, 2025.

January 2026: Character AI and Google settle multiple wrongful death lawsuits, including the Garcia/Setzer case.

February–April 2026: Full-screen ads deploy to free users. Charms metering announced. c.ai Labs launched as an experimental feature layer.

Funding Summary

RoundDateAmountLead InvestorPost-Money Valuation
SeedDec 2021$43MFounders—
Series AMar 2023$150MAndreessen Horowitz$1B
Google License DealAug 2024$2.7B*Google~$2.5B (peak)
Total raised$193M (equity)$1B (2025)

*The Google $2.7B is a technology license payment, not an equity investment in Character AI. It does not appear on Character AI’s cap table and did not change the company’s ownership structure.

Character AI Safety Statistics & Legal Cases

This section exists because the safety record is material to understanding what Character AI is and where it sits in 2026. The data is reported as documented fact, not editorialized.

The Sewell Setzer III Case

On February 28, 2024, 14-year-old Sewell Setzer III of Orlando, Florida died by suicide. Beginning around April 2023, Setzer had spent approximately 10 months in escalating conversation with a Character AI chatbot modeled on Daenerys Targaryen from Game of Thrones. Court filings in the wrongful death lawsuit brought by his mother, Megan Garcia (filed October 2024, U.S. District Court for the Middle District of Florida, No. 6:24-cv-01903-ACC-DCI), alleged that the bot engaged in romantic and sexual conversations with a minor, failed to provide crisis intervention when Setzer expressed suicidal ideation, and responded to his statement that he was ready to “come home” with encouragement rather than redirection.

In January 2026, Character AI and Google agreed to settle the case and a companion case involving the November 2023 suicide of 13-year-old Juliana Peralta of Thornton, Colorado, whose family had filed a separate federal wrongful death suit in September 2025. The settlement marked the first resolution of wrongful death claims against an AI company in U.S. history. Terms were not disclosed.

A December 2024 lawsuit filed by Texas families alleged the platform encouraged self-harm as a coping mechanism for a 17-year-old with autism. Multiple additional lawsuits were filed in Florida, Texas, Colorado, and New York through 2025, alleging exposure of minors to sexualized content and inadequate safeguards.

Safety Policy Timeline

DateAction
December 2024Teen-specific AI model introduced with content filters
December 202460-minute engagement nudges and more visible “AI is not real” disclaimers added
October 2025Announcement: users under 18 banned from open-ended conversations from Nov 25, 2025
November 2025Age verification via selfie at sign-up deployed; minors limited to images, video, and saved chats
November 2025Partnership with Koko for in-product emotional support resources
November 2025Integration with ThroughLine for guided off-boarding to verified crisis helplines
January 2026Settlement of Setzer and Peralta wrongful death lawsuits

The November 2025 ban on under-18 open-ended chat removed a substantial portion of Character AI’s core demographic. 1 in 3 teens reported using AI companions in a July 2025 Common Sense Media survey. The platform did not quantify the MAU impact of the ban publicly.

Character AI vs Competitors

Character AI vs ChatGPT

MetricCharacter AIChatGPT
Monthly active users~20M~800M weekly active users
Monthly web visits~170–185M (2025–2026)~3B+
Revenue (2025)$50M~$25B ARR
Avg session duration17 min 23 sec7 min 12 sec
Primary use caseRoleplay, entertainment, companionshipGeneral purpose, productivity
Subscription price$9.99/month$20/month (Plus)
U.S. app MAU4.42M37M

ChatGPT’s session duration is less than half of Character AI’s. That is a meaningful signal about format: information retrieval ends conversations quickly; narrative immersion extends them. Character AI’s engagement lead is real and structural — it is not a measurement artifact. The revenue gap is equally structural: $25 billion versus $50 million is a 500× difference on a fraction of the MAU difference.

Character AI vs Replika

Replika is the most direct competitor — an AI companion platform focused on emotional support and relationship simulation. Replika generates $24–30 million in annual revenue with approximately 2 million monthly active users. Its revenue per MAU is roughly $12–15, versus Character AI’s $2.50. Replika’s subscription-only model creates higher ARPU but limits addressable market. Character AI has 10× the users; Replika has 5–6× the revenue per user.

Character AI App Download Statistics

  • 75 million+ total downloads across the App Store and Google Play
  • 4.9 million average monthly downloads on Google Play
  • 7.9 million downloads in August 2024 — the single-month peak, coinciding with the Google deal announcement
  • 25.4 million downloads in the first half of 2025
  • App Store rating: 4.7 stars (iOS)

The download volume has not translated proportionally into retained MAU, which is consistent with the character AI platform experience: a high proportion of new users explore the platform briefly and leave, while a smaller core base engages with deep daily usage.

Character AI Statistics: Community & Social

  • 2.54 million r/CharacterAI subreddit members as of February 2025, ranked approximately 1,388th by subscriber count
  • 246 posts and 693 comments per day average on the subreddit
  • YouTube is the primary social referral source for new user discovery
  • Direct traffic at 65–71% of total visits indicates the platform relies heavily on existing users returning, not viral growth

The community health matters more for Character AI than most AI platforms because user-generated content is the product. The subreddit is where users share character templates, report bugs, provide moderation feedback, and build the social norms that govern what kinds of characters get built. When Character AI introduced ads and Charms metering, the subreddit was the primary venue for the backlash — and also the primary data source for whether that backlash was translating into actual churn.

Methodology

Data collection: Axis Intelligence Research compiled Character AI statistics from Similarweb (web traffic, session duration, demographics), Semrush (monthly visits), Business of Apps (MAU, revenue), Sacra equity research (revenue estimates, business model analysis), court filings and news coverage for legal/safety data, and public reporting from The Wall Street Journal, The Information, CNN, and CNBC for the Google deal and corporate timeline.

Original metric: The Character AI Engagement Quality Index™ (CAEI™) is an original metric developed and first published by Axis Intelligence Research on June 23, 2026. The four-dimension framework is designed to hold engagement quality and monetization efficiency simultaneously — two variables that almost all existing Character AI coverage treats separately.

Data conflicts flagged:

  • MAU discrepancy: Business of Apps reports 45 million MAU in September 2025; Similarweb and DemandSage report approximately 20 million. Axis Intelligence Research uses 20 million as the primary figure and flags the discrepancy.
  • Revenue: No audited financials exist for a private company. Figures are third-party estimates (Business of Apps, Sacra) that are directionally consistent with each other.

Limitations: Character AI does not publish earnings, MAU, or engagement data publicly. All figures are third-party estimates or derived from web analytics tools. Legal settlement terms were not disclosed.

Update cadence: Next update: Q1 2027.

About This Dataset

Dataset title: Character AI Statistics 2026 — Users, Revenue & Engagement Data

Creator: Axis Intelligence Research

Publisher: Axis Intelligence (axis-intelligence.com)

Coverage: 2022–Q2 2026

License: CC BY 4.0. Attribution required: “Axis Intelligence Research, axis-intelligence.com/character-ai-statistics/”

Download: Character AI Statistics 2026 CSV Dataset

APA: Axis Intelligence Research. (2026, June 23). Character AI Statistics 2026: Users, Revenue & Engagement Data. Axis Intelligence. https://axis-intelligence.com/character-ai-statistics/

MLA: Axis Intelligence Research. “Character AI Statistics 2026: Users, Revenue and Engagement Data.” Axis Intelligence, 23 June 2026, axis-intelligence.com/character-ai-statistics/.

Chicago: Axis Intelligence Research. “Character AI Statistics 2026: Users, Revenue and Engagement Data.” Axis Intelligence, June 23, 2026. https://axis-intelligence.com/character-ai-statistics/.

Frequently Asked Questions

How many users does Character AI have?

Character AI reached approximately 20 million monthly active users in 2025, down from a peak of 28 million in mid-2024. Monthly web visits run approximately 170–185 million, which is higher because visit counts include non-authenticated and repeat sessions within the same month.

What happened to Character AI’s founders?

Co-founders Noam Shazeer and Daniel De Freitas left Character AI in August 2024 as part of a $2.7 billion deal in which Google licensed Character AI’s LLM technology. Both returned to Google, where Shazeer co-led the Gemini AI project. In June 2026, Shazeer announced he would leave Google to join OpenAI.

How does Character AI make money?

Character AI earns revenue through three main channels: the c.ai+ subscription at $9.99/month (primary revenue source), mid-chat advertising for free users (deployed April 2026), and a Charms microtransaction system for feature access (introduced March 2026). The $2.7 billion Google license payment funded the company but was a one-time deal, not recurring revenue.

How much does Character AI cost?

The core platform is free with ads. The c.ai+ subscription costs $9.99 per month or $94.99 per year, offering ad-free access, priority messaging, faster responses, voice calls with characters, and access to the Imagine animated chat tool.

Is Character AI safe for teens?

As of November 25, 2025, users under 18 are banned from creating or engaging in open-ended conversations with AI characters on Character AI. They retain access to saved chats, image creation, and video features only. Age verification requires a selfie at sign-up. The platform settled multiple wrongful death lawsuits in January 2026 related to harms to minors. Character AI has partnered with ThroughLine to integrate a verified global crisis helpline network for at-risk users.

What is Character AI’s revenue?

Character AI generated approximately $50 million in revenue in 2025, up 55% from $32.2 million in 2024 and more than 200% from $15.2 million in 2023. These are third-party estimates; Character AI does not publish financial results as a private company.

What is Character AI’s valuation?

Character AI’s equity valuation stands at approximately $1 billion in 2025, down from a peak of $2.5 billion in mid-2024. The decline reflects the departure of the founding engineers, high operating costs relative to revenue, and a MAU decline from the 28 million peak. The $2.7 billion Google deal was a technology license payment, not a valuation marker.

How long do users spend on Character AI?

The average Character AI visit lasts 17 minutes and 23 seconds, with users viewing approximately 9.86 pages per visit. That is 2.4× longer than the average ChatGPT session (7 minutes 12 seconds). Users who engage daily report spending approximately 2 hours per day on the platform, per multiple survey-based estimates, though per-session Similarweb data suggests 17 minutes per discrete visit.

How many characters has Character AI created?

Users have created over 18 million unique AI characters on the platform, with approximately 9 million new characters added each month. The top 10 characters account for approximately 50% of all conversations — a strong power-law concentration within a very large catalog.


Axis Intelligence Research produces this dataset independently. Axis Intelligence is not affiliated with Character Technologies Inc. All data is derived from publicly available third-party research.

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