Character.AI is no longer just about advanced chatbots. The company has shifted its focus toward entertainment, giving millions of users new ways to interact with AI in fun and creative ways.
The platform recently introduced an AI-powered social feed. It looks and feels a bit like TikTok, but instead of short videos, users see creative posts from AI characters and can join in with their own content.
People can remix stories, create video snippets, or set up debates between characters.
It is a fresh step that makes AI less about work and more about play. You can read more about this launch on Tom’s Guide.
CEO Karandeep Anand made it clear that the company has moved away from trying to build general intelligence. Instead, Character.AI now focuses on building an AI entertainment ecosystem.
To power this, the team uses open-source models like Llama, Qwen, and DeepSeek. Anand explained that this gives them flexibility and better performance. More details were shared in Wired.
The platform is already seeing big numbers. It now reaches 20 million monthly users who spend about 75 minutes a day inside the app.
Half of its audience is from Gen Z and Gen Alpha, showing how popular AI companions are with younger people. A recent report by the Financial Times highlighted how this trend is growing fast.
Money is also flowing in. Subscriptions are up by 250 percent. Revenue could touch 50 million dollars by the end of 2025. This was reported by PYMNTS.
Character.AI is also paying attention to safety. The company runs a separate model for users under 18. Characters are labeled as fictional, and there are alerts that remind users to take breaks.
This is important since younger audiences form such a large part of the community.
With these steps, Character.AI is shaping itself as a leader in AI entertainment. It is building a place where creativity, storytelling, and safe interaction all come together.
