Business

Midjourney Acquires Co‑Star, pivots toward personalized services

Midjourney has acquired astrology app Co‑Star, which reports about 4.3 million monthly users and was profitable at the time of sale; the deal closed this spring and roughly two dozen Co‑Star staff moved to Midjourney.

Midjourney Acquires Co‑Star, pivots toward personalized services

Midjourney has purchased the astrology app Co‑Star, which interprets birth charts and produces compatibility scores between friends. The deal closed this spring. At the time of acquisition Co‑Star reported about 4.3 million monthly active users, was profitable, and roughly two dozen staff transferred to Midjourney. Co‑Star’s founder, Banu Guler, has taken the role of chief design officer at Midjourney.

Deal context and company strategy

The acquisition is part of a broader strategic shift: Midjourney is running eight concurrent projects, four hardware and four software. Among the hardware efforts is a full‑body ultrasound machine designed for spas. Bringing Co‑Star into the company aligns with a move toward subscription, personalization, and services that drive recurring engagement.

Market implications

Major players such as Google, OpenAI, and Adobe now often offer image‑generation tools freely or at low cost. Midjourney’s position is that such generative tools are easy to replicate and therefore do not by themselves create durable attachment. In contrast, Co‑Star’s model — daily use driven by claims of personal insight — and hardware projects like body scanning aim to produce a feeling that the product ‘‘knows’’ the user, which encourages repeat usage and paid subscriptions.

According to Holz, this approach is ‘‘humanistic’’: the company’s projects become machines that tell users who they are. Midjourney’s strategy is to pursue the kind of personal relevance and perceived understanding that free AI models cannot easily duplicate.

Takeaway

The Co‑Star acquisition signals Midjourney’s pivot from primarily offering generative imagery toward services that emphasize personalization and user retention. Integrating Co‑Star, with Banu Guler now leading design, is a concrete step in that direction.