Character.ai Proves AI Companionship

Shaan identifies a massive opportunity in AI companionship and chat services, validated by Character.ai's extraordinary traffic and engagement metrics. The business combines AI technology with human connection and entertainment.

Key Points:

• Market Validation:

  • Character.ai getting 200M visits
  • 33-minute average session duration
  • Exceeds traffic of major news sites like Wall Street Journal
  • Multiple companies seeing "ludicrous traffic" in this space

• User Behavior:

  • People willing to chat with AI for extended periods
  • Popular characters include:
    • Celebrities (Ariana Grande, Billie Eilish)
    • Historical figures (Einstein)
    • K-pop personalities

• Business Opportunity:

  • Range of services from:
    • Basic companionship
    • Entertainment/chat
    • Adult/romantic interaction
  • Current companies represent early attempts (Wave 1)
  • Major opportunity for "last mover" to build full product

• Strategic Insight:

  • Strange/unexpected user behavior indicates potential massive opportunity
  • Similar to early signs that preceded Twitch's success
  • Current players likely not the final winners
  • Space waiting for someone to "nail it" with full product offering