Midjourney's Consumer Pivot
Midjourney acquires Co-Star astrology app, signaling strategic pivot into consumer applications.
Anonymous
Key Points
1
Co-Star was backed by Maveron and the Female Founders Fund in a 2019 seed round (about $5.2 million) and later raised a Series A led by Spark Capital in 2021; investors are now exiting, though the deal size is undisclosed.
2
Co-Star reportedly had about 4.3 million monthly active users and more than 20 million downloads by 2021, and it combines NASA orbital data with AI and human-written horoscopes to generate personalized readings.
3
Midjourney operates without external funding and has claimed revenue well over $200 million per year while remaining profitable; the Co-Star acquisition is being funded from cash flow rather than a new venture round.
4
Co-Star runs a free app with a paid premium tier and push-notification-style horoscopes, a monetization approach that could inform Midjourney’s broader consumer strategy as it expands beyond its image and video tools.
Midjourney, the AI image startup behind one of the most popular generative art tools, has acquired Co-Star, the wildly popular astrology app, according to Bloomberg and TechCrunch. The deal marks a sharp pivot for Midjourney — known for text-to-image generation — into the world of consumer apps.
Co-Star, which combines NASA orbital data with AI and human-written horoscopes, had racked up more than 20 million downloads and 4.3 million monthly active users by 2021. Its roughly two-dozen-member team will join Midjourney as part of the deal. Financial terms were not disclosed.
Midjourney Builds Its First Standalone Consumer App
The Co-Star buy is part of a bigger push by Midjourney to move beyond its core image tool. Investing.com reported that Midjourney is also developing its first standalone image-generation app — a major step for a company that has so far operated mainly through Discord.
Co-Star's free app with a paid premium tier could serve as a blueprint. Its push-notification-style horoscopes — often blunt and shareable — helped it go viral among younger users. That kind of consumer-facing product experience is exactly what Midjourney has lacked until now.
Co-Star's Backers Exit After Years of Growth
Co-Star raised about $5.2 million in a 2019 seed round backed by Maveron and the Female Founders Fund. It later closed a Series A led by Spark Capital in 2021. Those investors are now exiting, though the sale price has not been made public.
The app built a loyal, digitally native audience by mixing real astronomy data from NASA with AI-generated text and human editorial input. That blend of science and mysticism helped Co-Star stand out in a crowded wellness app market.
Midjourney's Cash-Funded Deal Shows Its Financial Muscle
Midjourney has never taken outside funding. The company has claimed annual revenue well over $200 million while staying profitable. That means it likely paid for Co-Star entirely out of cash flow — no new venture round needed.
That financial independence sets Midjourney apart in a sector where most AI startups burn through investor money. Founder David Holz once called the current moment "a crazy moment in history" for AI, per Gizmodo. This deal suggests he is ready to bet on more than just image tools.
An Astrology-Themed Image Generator Is Already in the Works
Gizmodo reported that Midjourney plans to launch a new astrology-focused image generator as part of the Co-Star integration. This would be the first time Midjourney has tied its core image tech to a specific consumer theme or brand.
The move could help Midjourney reach users who have never touched a generative AI tool. Co-Star's audience — mostly young, mobile-first women — is a demographic Midjourney has not traditionally targeted. Blending star charts with AI art could open a new lane entirely.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
10
Articles
12
Reach
22
A
AnonymousAuthor
