- Midjourney has acquired astrology app Co-Star and is building its first standalone image-generation app as part of an expansion into new business areas.
- The acquisition closed this spring and was previously unreported. Midjourney declined to disclose financial terms.
- Co-Star uses birth charts, AI, and human writing to provide personalized advice and compatibility assessments. It has about 4.3 million monthly active users and offers some paid features.
- AI-native companies have tiny staffs and fewer bosses, leading to a flatter structure with fewer co-workers where everyone is a player-coach.
Midjourney Inc. is making significant strides in the AI landscape by acquiring the popular astrology app Co-Star, which utilizes birth charts and AI to provide personalized advice to its 4.3 million monthly users. This acquisition, finalized in spring, marks a pivotal moment for Midjourney as it aims to diversify its offerings beyond image generation.134
Co-Star's unique approach combines AI and human writing to assess compatibility among users, enhancing its appeal in the crowded app market. The acquisition aligns with Midjourney's vision of creating a suite of applications that leverage AI technology for various purposes.
Midjourney's expansion strategy reflects a broader trend in the tech industry, where AI-native companies are characterized by smaller teams and flatter organizational structures. These startups often operate with fewer bosses, promoting a culture where every team member acts as a player-coach. This model not only fosters innovation but also allows for rapid adaptation in a fast-evolving market.56
As Midjourney continues to develop its first standalone image-generation app, the integration of Co-Star's capabilities could enhance its product offerings and attract a wider user base, positioning the company for future growth in the AI sector.
“Co-Star, which uses birth charts and AI for personalized advice, has about 4.3 million monthly active users; the unreported acquisition closed this spring with undisclosed terms. Meanwhile, AI-native ventures operate with tiny staffs, fewer bosses, and a flatter structure where everyone is a player-coach.”
