There are reports stating that Character.AI, a chatbot platform, allows users to engage in conversations with human-like agents or predefined cartoon characters. Founded by two former Google employees, the platform is currently in the process of raising hundreds of millions of dollars in investment from Alphabet, Google’s parent company, with a projected business valuation of over $5 billion.
Previously, Character.AI secured a major investment of $150 million from Andreessen Horowitz, propelling its business valuation to $1 billion.
Character.AI’s business model offers users free access to the platform, but also provides a monthly subscription option priced at $9.99. This subscription grants users access to higher-level chatbots. This unique approach has garnered high popularity among younger users, setting it apart from other chatbot competitors like ChatGPT or Bard.
Google’s investment in Character.AI is not unexpected, as the platform currently utilizes TPUs on the Google Cloud for AI processing. This deal reflects the trend of major technology companies increasing their investments in AI-focused startups, and it represents the latest development in this ongoing trend.
TLDR: Character.AI, a chatbot platform founded by ex-Google employees, is receiving significant investment from Alphabet, Google’s parent company. With a projected business valuation of over $5 billion, Character.AI has gained popularity by offering both free access and a subscription option for higher-level chatbots. Google’s investment aligns with the trend of large tech firms investing in AI startups, as Character.AI utilizes Google Cloud’s TPUs for AI processing.