The monthly active user count of Character.ai, a developer of artificial intelligence applications, is catching up to ChatGPT. Although ChatGPT still leads significantly over Character.ai on the web, Character.ai has attracted a larger number of young users on mobile platforms. Additionally, Character.ai saw a decline in website traffic during the summer, but this was offset by an uptake in mobile users adopting its iOS and Android applications. Despite the presence of many AI character generators in the market, investors are betting on the founders of Character.ai. The company secured $150 million in an A round of funding, elevating its valuation to $1 billion. Character.ai's founders, AI experts Noam Shazeer and Daniel De Freitas, previously led a research team at Google that developed the LaMDA (Language Model for Dialogue Applications), a language model that has been instrumental in advancing conversational AI experiences.