Character.AI's platform, which receives between 150 million and 200 million visits monthly, is particularly popular among the 18-24 age demographic. The startup's potential $5 billion valuation would make it one of the most highly valued AI startups globally. Google's investment would strengthen the existing partnership between the two companies, as Character.AI uses Google Cloud and Tensor Processing Units to train its models. This move aligns with Google's strategy of investing heavily in AI, both in its own products and external startups.
Key takeaways:
- Google is reportedly in discussions to invest hundreds of millions of dollars in Character.AI, a startup that allows users to chat with AI chatbots based on celebrities or fictional characters.
- Character.AI is also in talks with VCs to raise new funds at a valuation of over $5 billion, which would be a 5x increase in less than a year.
- The startup, founded by former Google developers, launched in 2021 and has a significant user base within the younger demographic, particularly those aged between 18 and 24.
- Google's investment would strengthen the existing partnership between the two companies, as Character.AI uses Google Cloud and its Tensor Processing Units (TPUs) to train its models.