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Report: Google Weighs Further Investment in Character.AI

Nov 12, 2023 - pymnts.com
Google is reportedly planning to significantly invest in Character.AI, an artificial intelligence (AI) startup that specializes in training chatbot models. The investment, which could be structured as convertible notes, would strengthen the existing collaboration between the two companies. Character.AI, which uses Google's cloud services and tensor processing units to train its AI, has gained popularity with younger users, accounting for 60% of its web traffic.

The startup, founded by veterans of Google's AI project DeepMind, had previously raised $150 million at a $1 billion valuation to develop its AI-powered chatbots, some of which are modeled on fictional and historical characters and celebrities. The news comes amid a busy week for AI, with developments including OpenAI's plans to launch a store for developers to sell their GPT models, and rumors of Amazon building a large language model code-named Olympus.

Key takeaways:

  • Google is reportedly in talks to invest hundreds of millions into AI startup Character.AI to fund its mission to train chatbot models.
  • The investment could strengthen the existing collaboration between Google and Character.AI, which already uses Google's cloud services and tensor processing units to train its AI.
  • Character.AI's character-based chatbots have been popular with younger users, making up 60% of its web traffic.
  • Character.AI, founded by veterans of Google's AI project DeepMind, had previously raised $150 million at a $1 billion valuation to fund the development of its AI-powered chatbots.
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