Forget stickers, GIFs, and emoji reactions. Pixi is wagering that the next step in messaging involves interactive augmented reality (AR).

The startup released its messaging-native app on the App Store on Wednesday, enabling users to dispatch AI-powered AR characters via iMessage. Rather than showing up as static media, the characters activate through the recipient's iPhone camera, where they can respond to their environment, engage with people, and reply instantly.

While AR is not new and shiny anymore - companies like Snap have created AR filters and lenses for years - Pixi believes its approach is different. By merging AR with on-device AI, its characters can grasp what is happening around them and act accordingly. A virtual cat, for example, reacts when a real dog walks past. (According to the company, all visual and audio processing stays on the device to protect user privacy.)

Pixi founder Mark Drummond (ex-DreamWorks Animation and ex-Apple) says the app aims to add more presence and spontaneity to digital chats. Instead of sending a text to wish someone a Happy Birthday, users can send characters that build a shared experience, turning a simple message into something closer to a digital gift or playful interaction.

"The consumer problem we are solving is thinking of a friend when they are not present," he told TechCrunch. "Sometimes the psychology is called pebbling or creative gifting. You are sharing tokens of affection, basically cards, e-cards, and gifts. That is your dad, or, in some cases, your granddad's media. We can do better. We can do something that is digitally native, and that uses everything we learned about AR on the iPhone."

Earlier this week, Drummond demonstrated the app for us, selecting the cat character, which performed a series of stand-up jokes on his desk. Notably, the cat appeared to respond to Drummond's facial expressions. For instance, the experience ended when he smiled, showcasing the character's ability to perceive emotional cues.

At launch, users will have access to a robot, a cat, and an animated envelope character that can react to their voice and "attack" their friends in a playful way. If they move, the envelope will chase them. There are also games like tic-tac-toe and whack-a-mole.

Pixi plans to expand beyond just a few characters. The goal is to create a marketplace where studios, brands, and independent creators can share their unique characters for users to choose from. The company envisions this being used for events like movie premieres or product launches, allowing characters to generate excitement, such as when M&Ms release a new flavor.

Drummond also mentioned introducing Alice in Wonderland as a character option, as she is an open intellectual property. He pointed out that "our Alice character needs to react to objects that she sees on your desktop in an 'Alice-consistent' way," to demonstrate to partners how their creations will interact with the technology.

In the future, Pixi hopes to allow users to create their own characters and personalities.

"Part of our plan is to open up those generative AI capabilities to our [users], so they can prompt their way to say something, like, 'I want a blue blob that threatens my friend and growls at them and keeps chasing them on the phone,'" Drummond explained.

To send a character to your friend, download the app on iOS and use iMessage by tapping the plus sign button in the lower left corner. No installation is required to receive a Pixi message.

Initially, the app will be available only for iPhone models 11 and newer, but there are plans to expand to Android devices and messaging platforms like WhatsApp and Instagram in the future.

Also, while the app is free for users, brands will have the option to charge for their characters if they choose.

"We are going to encourage people to do it for free, because then people become your own brand ambassadors. You are putting them in charge of using your characters to tell their own stories," Drummond said.