TechDogs-"Midjourney Buys Co-Star To Build Its First Consumer AI Apps"

Artificial Intelligence

Midjourney Buys Co-Star To Build Its First Consumer AI Apps

By TechDogs Bureau

TD NewsDesk

Updated on Mon, Jul 27, 2026

Overall Rating

Generative AI company Midjourney has completed its first acquisition, buying personalised astrology app Co-Star as it prepares to expand beyond image-generation tools accessed through its website and Discord.

The deal brings Co-Star founder Banu Guler and her consumer-app team into Midjourney, where they will help establish a broader product and design organisation. Co-Star will continue operating under Guler’s direction, while Midjourney develops its first standalone applications.

 

TL;DR

 
  • Midjourney acquired Co-Star in its first company purchase.
  • Financial terms were not disclosed.
  • Co-Star has around 4.3 million monthly active users.
  • Banu Guler will continue leading Co-Star while supporting Midjourney’s product and design expansion.
  • Midjourney is developing a standalone image-generation app.
 

Why Did Midjourney Buy Co-Star?

 

Midjourney announced the acquisition on July 23, 2026, although the transaction reportedly closed during spring 2026. Neither company revealed the financial terms of the deal.

The purchase may appear unusual for a company best known for generating images and video clips from text prompts. However, Co-Star offers something Midjourney currently lacks, an established consumer application, an experienced mobile-product team and a large base of engaged users.

Co-Star has approximately 4.3 million monthly active users, according to Sensor Tower data cited in reports about the transaction. Its team of around two dozen employees is joining Midjourney as part of the acquisition.

Midjourney currently describes itself as a community-funded research laboratory with around 60 employees. While its creative models can be accessed through its website, the company has long been associated with its Discord-based experience and does not yet offer an official standalone mobile app.

Guler and her team will help Midjourney build its first dedicated applications, including a standalone image-generation app. Reports also indicate that Guler will become Midjourney’s chief design officer while continuing to lead Co-Star.

What Happens To Co-Star?

 

Midjourney founder David Holz said Co-Star would remain under Guler’s control and direction rather than being absorbed or discontinued.

“Co-Star itself is a wonderful project, and it will remain entirely under Banu’s control and direction,” Holz said. He added that the app would now receive “radically expanded resources and teams” to support Co-Star and Midjourney’s wider projects.

Co-Star combines astronomical position data from NASA’s Jet Propulsion Laboratory with human-written material and natural-language AI to produce personalised horoscopes, compatibility assessments and daily advice. The company operates through a freemium model, earning revenue from optional in-app purchases such as advanced chart readings.

Guler presented the acquisition as part of a shared belief that technology should support human expression instead of replacing people.

“At a time when it feels like many labs are pushing toward replacing humans with computers, David and I are taking a different approach,” Guler said. She described computers as tools that can reveal what people feel, mean or imagine before they can express it themselves.

 

Midjourney Expands Beyond Image Generation

 

The acquisition forms part of a wider expansion at Midjourney. Holz said the company plans to announce around six similarly ambitious projects over the next six months.

The company recently unveiled Midjourney Medical, an initiative developing full-body ultrasound scanning technology and proposed wellness locations. It is reportedly working across eight projects, divided between four software and four hardware initiatives.

With Co-Star, Midjourney is not simply acquiring an astrology brand. It is buying consumer-product expertise, mobile distribution and a team experienced in turning personalised AI-generated content into a recurring daily habit.

First published on Mon, Jul 27, 2026

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