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Wabi raises $55M at a $1.25B valuation, founded by Replika's Eugenia Kuyda
On 29 October 2026 personal-AI startup Wabi announced a $55M round led by IVP at a $1.25B valuation; the app was founded by Replika creator Eugenia Kuyda as a shared, multiplayer AI assistant.
New York bans AI chatbots from acting as friend, partner or authority figure to minors
On 28 October 2026 Governor Kathy Hochul signed a law barring AI chatbots from simulating human feelings or romantic relationships for under-18s; it takes effect 1 January 2027 with fines up to $25,000 per violation.
China's Today AI closes $200M+ round for proactive personal AI assistants
Personal-AI startup Today AI disclosed a $200M+ first funding round backed by Tencent, Ant Group, Sequoia China, IDG and others, betting on memory-driven, proactive assistants that act like a 'person who knows you'.
Meta's Muse hits 10M US downloads in 40 days, a milestone only 11 other apps have reached
Meta's AI companion app Muse reached 10.9M downloads (10.2M in the US) in its first 40 days, a download pace only 11 other apps have ever matched, per Sensor Tower via TechCrunch.
Tolan snags $30M for its AI companion that helps users navigate daily life
AI companion startup Tolan raised $30M led by Union Square Ventures (with Khosla Ventures and Homebrew), reporting 250,000+ active users and 70M+ conversations in the past year.
US regulators escalate chatbot-safety crackdown: FTC subpoenas OpenAI and Anthropic, eight states sue OpenAI
On 14–15 October 2026 the FTC sent 50-plus-page civil investigative demands to OpenAI and Anthropic over safety incidents, while eight states sued OpenAI alleging it misled families about ChatGPT's child-safety risks.
Character.AI files for Chapter 11 bankruptcy; Disney lined up as $20M lead bidder
On 12 October 2026 Character.AI filed for Chapter 11 to run a court-supervised sale, with Disney agreed as a $20M stalking-horse bidder; the platform stays online while the process plays out.
China's Nature Select (EVE) raises over $30M for 3D emotional AI companions, led by Alibaba and Ant Group
AI companion studio Nature Select (自然选择) closed a new round above $30M backed by Alibaba, Ant Group, Qiming, 5Y Capital and others, to build its proactive, memory-driven 3D companion app EVE.
Cal AI founder Zach Yadegari launches Persona and raises $10M for a personal AI agent
Teen founder Zach Yadegari launched Persona, a personal AI agent that starts in iMessage and ships a $179 wearable band, after raising $10M led by Vine Ventures.
Kindroid retires its unlimited free Lite tier, moves to a bounded preview
From 1 October 2026 Kindroid ended permanent free Lite access; new accounts get a one-time 50-interaction preview, then the account turns read-only unless subscribed.
Romania's Kyndred raises €500K pre-seed to build memory-and-voice AI companions
Romania-based startup Kyndred raised €500,000 in pre-seed funding led by Early Game Ventures to build AI companions with a face, voice and persistent memory, starting with its Maya app.
iSoulChat publishes the 2026 AI Companion Industry Report
Our free, citable report snapshots the AI companion market across 220+ products — capability coverage, platform reach and pricing structure — and is now downloadable as a PDF.
China's CAC drafts rules that would bar minors from virtual companions and AI intimacy
On 18 September 2026 China's CAC published a draft State Council regulation that would prohibit platforms from offering virtual companions and virtual-intimacy services to anyone under 18, with comment open until 17 October 2026.
EU proposes the KIDS Act: pre-market child-safety tests for AI companions
On 17 September 2026 the European Commission proposed the EU KIDS Act (COM(2026) 681 final), placing AI companions and general chatbots under dedicated child-safety duties routed through the AI Act.
California enacts 'Adam's Law' — the nation's strongest companion-chatbot rules for kids
On 10 September 2026 Governor Newsom signed SB 1119 ('Adam's Law'), requiring companion-chatbot operators to run crisis protocols, parental controls, independent safety audits and annual risk assessments for minors.
337 revenue-generating companion platforms are live; 128 launched in 2026 alone
Independent tracking counts roughly 337 active, revenue-generating AI companion platforms, with about 128 launched in 2026 — a 60% increase over 2024. The same year saw high-profile shutdowns and a wave of pricing restructures.
EU AI Act becomes enforceable for companion apps
From August 2026 the EU AI Act's obligations apply to companion-chatbot operators, adding transparency, risk-management and documentation duties on top of national rules.
Character.AI's April 2026 update: new model, memory, Lorebook, tighter teen limits
The April 2026 update shipped a new model, memory improvements and Lorebook worldbuilding features, alongside broader age restrictions, usage limits and ads for free users.
Replika rebuilds its platform and crosses 42 million users
Replika repositioned its app around emotional connection, long-term memory, voice, video chat and real-life nudges, and its site now shows more than 42 million users. It also launched an 'Ultra' tier in 2026.
Meta pauses teen access to AI characters across its apps
Meta paused teen access to AI characters across Instagram, WhatsApp and its wider app family while it works on an updated teen-safe experience.
California's SB 243 is now in force: companion-chatbot safeguards become law
From 1 January 2026, operators of companion chatbots in California must disclose that users are talking to AI, remind minors to take breaks every three hours, run a crisis-escalation protocol, and file annual reports. Families gain a private right of action.