AI image-generation company Midjourney announced it has acquired social astrology app Co-Star. This is Midjourney’s first acquisition since it was founded. Specific deal terms have not been disclosed yet. All 24 employees at Co-Star have joined Midjourney. Founder Banu Guler is now serving as Midjourney’s Chief Design Officer.
Co-Star basics: 4.3 million monthly active users, 20 million cumulative downloads
Based on the acquisition announcement and reports, Co-Star’s key background information is as follows: founded in 2017, with founders Banu Guler, Anna Kopp, and Ben Weitzman, headquartered in New York, United States. After users input their birth time and location, the app combines NASA planetary data with methods from professional astrologers. Using AI algorithms, it tracks celestial trajectories in real time to generate personalized natal chart analysis and horoscopes, and it also lets users view friends’ charts and calculate compatibility.
Co-Star has roughly 4.3 million monthly active users and more than 20 million cumulative downloads, and it has done almost no marketing. Co-Star also did not take external venture capital; it became profitable within half a year.
Midjourney’s acquisition motivation: Holz knew Guler for five years
According to David Holz’s official announcement, the core motivation for this acquisition is not Co-Star’s astrology algorithms, but Banu Guler’s design and product judgment. Holz said he has known Guler for more than five years, and the two often spend several hours every week talking about “how people reflect and make decisions in the present, the future, and over the past thousands of years.”
In Midjourney’s current product lineup (with its models still mainly focused on the web and Discord and not yet having launched its own app), Guler’s deep understanding of why users would trust what an app tells them is a missing piece in Midjourney’s transition plan.
Midjourney financial milestones: no outside funding model, annual revenue over $500 million
According to reports, Midjourney’s key financial milestones are as follows:
Founded: August 2021, with 11 initial full-time employees
Within 24 months: ARR grew from $0 to $200 million (self-funded funding model)
In 2023: annual revenue reached $200 million, with a staff size of 40
Currently: annual revenue is over $500 million; valuation is $10 to $10.5 billion (price-to-sales ratio over 20x)
Total funding: none—operating entirely on subscription cash flow from users
Midjourney’s subscription fee ranges from $10 to $120 per month. David Holz said the company’s goal is to build a self-funded business that’s “a bit like Craigslist,” one that can stand the test of time.
FAQ
How much was the deal amount for Midjourney’s acquisition of Co-Star?
According to Midjourney’s official announcement, the specific deal terms (including the transaction amount) have not been disclosed; this is Midjourney’s first acquisition since it was founded.
What arrangements are in place for the founders and employees after Co-Star is acquired?
According to the Midjourney announcement, all 24 Co-Star employees have joined Midjourney. Founder Banu Guler will serve as Midjourney’s Chief Design Officer and will rebuild cross-functional design, product, and frontend teams. The Co-Star app will continue to be operated under Banu.
Why did Midjourney choose to acquire an astrology app?
According to David Holz’s explanation in the official announcement, the purpose of this acquisition is to obtain Banu Guler’s understanding of “why users would trust what an app tells them,” rather than the astrology algorithms themselves. It is part of Midjourney’s transition plan to become a “very unusual research lab.”
