Midjourney, the AI startup that evolved from generating whimsical cat images to producing detailed full-body ultrasound scans, has announced its acquisition of Co-Star, a popular personalized astrology app. The deal, which closed in spring 2026, marks Midjourney's entry into the astrology space, leveraging Co-Star's blend of human insight, NASA data, and artificial intelligence to deliver daily horoscopes and compatibility checks. Co-Star's founder, Banu Guler, will continue to lead the app while also taking on the role of chief design officer at Midjourney, according to Bloomberg.

Why Astrology?

At first glance, the pairing of a cutting-edge AI image generator with an astrology app may seem unusual. However, both companies operate at the intersection of technology and human experience. Co-Star, launched in 2017, quickly gained a following among millennials and Gen Z users for its sleek design and data-driven approach to astrology. Unlike traditional horoscopes, Co-Star combines astronomical data from NASA with psychological frameworks and user input to generate personalized advice. The app's interface is minimalist and dark, with notifications that often read like poetic affirmations or gentle admonitions.

For Midjourney, this acquisition provides a ready-made user base of millions who are already comfortable with AI-generated content in a personal context. The company's founder, David Holz, has long emphasized that Midjourney is not just about images but about creating tools that augment human creativity and curiosity. In a statement, Holz noted that Guler's expertise in designing intimate, AI-driven experiences will be invaluable as Midjourney develops its first standalone applications.

Co-Star's Journey

Co-Star was founded by Banu Guler, a former editor at The New Yorker and self-described skeptic of mainstream astrology. She sought to create an app that respected both the algorithms and the art behind astrological interpretation. The app quickly became a cultural phenomenon, featured in fashion magazines and discussed on social media platforms. Its success was fueled by a design philosophy that prioritized user privacy and a distinct voice—often cryptic but always compelling.

The app's underlying technology uses a combination of natural language processing and rule-based astrology systems to generate daily readings. Users can also check compatibility with friends, which relies on the positions of planets at the time of their births relative to each other. While scientifically unproven, the experience has felt deeply personal to many users, a fact that Holz believes speaks to the power of AI when harnessed with thoughtful design.

Midjourney's Evolution

Founded in 2021 by David Holz, a former Leap Motion executive, Midjourney first gained attention for its ability to generate stunning images from text prompts. The platform quickly became a favorite among artists, designers, and hobbyists, operating primarily through Discord and a web app. In 2024, Midjourney expanded into medical imaging, partnering with hospitals to create AI-generated ultrasound scans that assist in diagnosing fetal abnormalities. This leap from art to medical application demonstrated the versatility of its underlying diffusion models.

The company's growth has been rapid but relatively quiet, funded by user subscriptions rather than venture capital. Midjourney has maintained a lean team and a culture of rapid iteration. The acquisition of Co-Star represents its first major corporate purchase, signaling a shift from purely technological development to user-facing products. Holz has indicated that the first app will focus on image generation, bringing the power of Midjourney to mobile devices with a dedicated interface.

This move aligns with broader industry trends. As AI models become more capable, companies are scrambling to find consumer-friendly interfaces that go beyond chatbots. Personalized utilities—like horoscopes, fitness plans, or dietary tracking—offer a natural entry point. Co-Star's success shows that users are willing to trust AI for personal advice if the interface feels human and empathetic.

Industry Implications

The acquisition also raises questions about the future of AI in creative and spiritual domains. While some critics dismiss astrology as pseudoscience, its popularity suggests a growing appetite for technologies that provide meaning and connection. Midjourney's entry into this space could accelerate the integration of AI into daily rituals, from morning horoscopes to bedtime stories.

However, there are challenges. Co-Star has faced criticism over its use of personal data—users provide birth dates, times, and locations, all of which are sensitive information. Midjourney has pledged to maintain Co-Star's privacy policies, which emphasize anonymization and user control. Additionally, the app's reliance on NASA data for precision might raise intellectual property questions, though Co-Star has historically used that data as a foundational layer rather than a proprietary asset.

Banu Guler's new role at Midjourney will involve overseeing design across all future products. Her background in editorial rigor and user empathy is expected to shape how Midjourney's AI tools interact with people. In an interview, Guler said she sees a natural synergy between astrology and AI: both involve pattern recognition and prediction, but they also require a touch of magic to feel real.

As for the current Co-Star app, it will continue to operate as before, though users may notice updates over time. Holz has insisted that the acquisition is not about rebranding Co-Star but about learning from its design and user engagement. The larger vision is to create a suite of applications where AI acts as a supportive companion rather than a blunt tool.

This move also places Midjourney in competition with other AI-driven lifestyle apps, such as those developed by OpenAI and Anthropic, which have been exploring personal assistants and wellness tools. However, by focusing on a specific niche—astrology—Midjourney is carving out a distinct identity that combines technology with mystique.

The terms of the deal remain undisclosed, but according to industry insiders, it was a mix of cash and equity. The acquisition closed in spring 2026, a timing that suggests Midjourney is accelerating its product development cycle. With the integration of Co-Star's team, the company could release its first dedicated app by early 2027.

The broader implications for the AI industry are significant. As companies seek to move beyond text and image generation, they are looking for ways to embed AI into everyday life. Astrology, with its millions of adherents and deep cultural roots, offers a fertile ground. Whether this leads to a wave of similar acquisitions or a backlash from skeptics remains to be seen.

In the near term, Midjourney's acquisition of Co-Star is a bet on the premise that AI can be both personal and profound. If successful, it could redefine how people interact with algorithmic advice, blending hard data with soft intuition. The partnership between David Holz and Banu Guler represents a fusion of technical ambition and creative vision, one that might just produce the next breakout consumer AI products.

Source:The Verge News