AI image generation company Midjourney has acquired astrology platform Co-Star in its first acquisition, marking a significant step in its expansion beyond image generation and into consumer-facing applications. The deal, whose financial terms were not disclosed, brings Co-Star founder Banu Guler and her team to Midjourney as the company prepares to launch its first standalone image-generation app.
The acquisition reflects Midjourney's broader strategy to diversify its portfolio as competition in the generative AI market intensifies. Best known for its AI-powered image and video generation tools, Midjourney has largely operated through Discord and its web platform. The company is now investing in dedicated consumer products, signalling a shift toward a more comprehensive software ecosystem.
Co-Star is among the world's most widely used astrology applications, offering personalised daily horoscopes and compatibility insights using birth chart data, AI and human-written content. According to Sensor Tower data cited in reports, the app has around 4.3 million monthly active users. Despite the acquisition, Midjourney said Co-Star will continue operating independently under Guler's leadership.
Midjourney founder David Holz said Guler will also assume the role of Chief Design Officer at Midjourney. In a company announcement, Holz described the acquisition as part of a long-term vision to build "a very unusual research lab" focused on ambitious projects that extend beyond image generation. He added that Guler and her product and design team will help strengthen Midjourney's capabilities as it develops a broader suite of consumer applications.
The acquisition follows Midjourney's recent announcement of several new initiatives outside its traditional AI imaging business. Last month, the company unveiled Midjourney Medical, a project aimed at developing AI-powered full-body ultrasound technology. Holz has also indicated that the company plans to announce several additional projects over the coming months, spanning both software and hardware.
Industry observers view the Co-Star acquisition as a move to strengthen Midjourney's consumer product expertise rather than simply expand into astrology services. Co-Star's design-led approach and loyal user base could help Midjourney develop intuitive AI applications that appeal to mainstream consumers. Reports suggest the acquired team will play a central role in building Midjourney's first dedicated image-generation app, giving users an experience beyond its existing Discord-based workflow.
The transaction also highlights how AI companies are increasingly pursuing acquisitions to accelerate product development instead of relying solely on in-house engineering. As the market for generative AI matures, firms are placing greater emphasis on user experience, mobile-first interfaces and consumer engagement alongside advances in model performance.
For Midjourney, the acquisition represents more than an expansion into a new category. It signals the company's ambition to evolve from a specialist AI image platform into a broader consumer technology company with multiple AI-powered products. While the roadmap for its upcoming applications remains undisclosed, the addition of Co-Star's product and design expertise is expected to play a key role in shaping Midjourney's next phase of growth.