Google Eyes AI Startup Character.AI for Potential Investment

/ Discover Google’s potential multimillion-dollar investment in Character.AI, an AI startup founded by former Google employees.

By Nilesh Badwar.

Nov 11, 2023, 13:21 PM IST

In a move signaling Google’s keen interest in the burgeoning field of artificial intelligence, the tech giant is reportedly exploring a substantial investment in Character.AI, an AI startup founded by former Google employees Noam Shazeer and Daniel De Freitas. The investment, rumored to amount to hundreds of millions of dollars, is said to focus on enhancing Character.AI’s capabilities in training artificial intelligence chatbot models.

According to sources familiar with the matter, the potential investment is expected to take the form of convertible notes, solidifying the already-existing collaboration between Google and Character.AI. Currently, Character.AI leverages Google’s cloud services and Tensor Processing Units (TPUs) for model training.

Character.AI has carved its niche by offering a platform where users can engage in conversations with virtual versions of celebrities such as Billie Eilish. Additionally, the startup empowers users to craft their own chatbots and AI assistants. The platform operates on a freemium model, allowing users to access basic features for free while also offering a subscription-based model for more advanced functionalities.

Since its launch, Character.AI has seen remarkable traction, with the company revealing that its website has garnered an impressive 100 million monthly visits within the first six months. This potential infusion of funds from Google could not only signify a significant step for Character.AI but also deepen the collaborative efforts between the two entities, showcasing the evolving landscape of AI innovation and its applications in the tech industry.