Stock Markets July 24, 2026 11:52 AM

Midjourney Expands into Consumer Apps with Acquisition of Co-Star

AI lab picks up astrology app as it broadens beyond subscription image service and pursues hardware and software projects

By Leila Farooq
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Midjourney Inc. has acquired astrology app Co-Star and is developing its first standalone image-generation application as it diversifies from its subscription-based generative AI offering. The deal closed this spring with financial terms undisclosed. Co-Star founder Banu Guler will continue to lead the app and join Midjourney’s product and design efforts as the startup pursues multiple hardware and software initiatives.

Midjourney Expands into Consumer Apps with Acquisition of Co-Star
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Key Points

  • Midjourney acquired Co-Star this spring; the companies did not disclose financial terms.
  • Co-Star combines birth charts with AI and human writing, and reports about 4.3 million monthly active users.
  • Midjourney is developing eight concurrent projects - four hardware and four software - and will integrate Co-Star’s team to support those efforts.

Midjourney Inc., the San Francisco-based artificial intelligence lab known for its subscription image-creation service, has purchased the astrology app Co-Star as part of a broader push into consumer applications.

The acquisition, which Midjourney said closed this spring, was completed without disclosed financial terms. Co-Star, which combines users' birth charts with a mix of AI and human-written content to deliver personalized guidance and compatibility assessments, operates as a free app with optional paid features. Sensor Tower data cited by the companies puts Co-Star at about 4.3 million monthly active users.

Under the agreement, Co-Star founder Banu Guler will keep control of the app’s direction while joining Midjourney to help build out the organization’s product and design capabilities. Midjourney’s founder David Holz said he first met Guler more than five years ago and that the two developed a frequent working relationship, sometimes speaking for several hours a week.

The deal is part of a larger strategic shift at Midjourney as the company moves beyond its core generative AI subscription service. Last month the company disclosed work on a full-body ultrasound device intended for installation in spa locations. That device is one of eight projects the company is currently pursuing, divided evenly between four hardware and four software initiatives.

Midjourney indicated that Co-Star will gain access to broader resources and additional teams to support the startup’s expanding slate of projects. Holz said the company plans to reveal roughly half a dozen similarly ambitious projects over the next six months.


Context and implications

The acquisition brings a consumer-facing app with millions of monthly users into Midjourney’s portfolio and embeds experienced product leadership from Co-Star within the AI lab. The move aligns with the company’s parallel hardware and software development efforts and signals an emphasis on building out product and design functions to support a diverse project pipeline.


Data and sources

  • Acquisition closed this spring; financial terms were not disclosed.
  • Co-Star uses birth charts with AI and human writing to provide personalized advice and compatibility data.
  • Co-Star has about 4.3 million monthly active users, per Sensor Tower.
  • Midjourney is pursuing eight projects in total - four hardware and four software - including a full-body ultrasound device intended for spa locations.
  • Banu Guler will retain control of Co-Star and join Midjourney to help develop product and design; David Holz reports a multi-year working relationship with Guler.

Risks

  • Financial terms of the acquisition were not disclosed, leaving the transaction's scale and immediate impact on Midjourney’s finances unclear - this affects investors and the software sector.
  • Midjourney is managing multiple simultaneous projects across hardware and software, which presents execution and resource-allocation uncertainty - this affects the broader AI and hardware development segments.
  • Integration of Co-Star under retained founder leadership implies organizational change that may present risks to product continuity and user experience during the transition - this impacts consumer apps and digital media sectors.

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