Google, the tech giant, is reportedly in advanced discussions to invest hundreds of millions of dollars in an AI startup, Character.AI. This move is seen as a significant step in Google’s ongoing commitment to artificial intelligence and its applications.
About Character.AI
Character.AI is a fast-growing artificial intelligence chatbot startup. It was founded by former Google employees Noam Shazeer and Daniel De Freitas.
Character.AI’s Unique Offering
The platform enables users to engage with virtual versions of celebrities like Billie Eilish and anime characters. Additionally, it allows users to create their own chatbots and personalized AI assistants.
Character.AI’s Business Model
The service is free to use, but it offers a subscription model that charges $9.99 a month for users who want to skip the virtual line to access a chatbot. Character.AI’s chatbots, with various roles, have appealed to users ages 18 to 24, who contributed about 60% of its website traffic.
The Investment
The investment by Google could be structured as convertible notes. This will strengthen Character.AI’s partnership with Google, utilizing the company’s cloud services and Tensor Processing Units (TPUs) to train models.
Character.AI’s Valuation
Character.AI is also in talks to raise equity funding from venture capital investors, which could value the company at over $5 billion. Moreover in March, it raised $150 million in a funding round led by Andreessen Horowitz at a $1 billion valuation.
Insiders View
This potential investment by Google in Character.AI is a testament to the growing importance and influence of AI in our daily lives. As AI continues to evolve, it’s clear that companies like Google are keen to stay at the forefront. Further this move could potentially lead to more advanced AI chatbots in the future.
