Google is reportedly discussing a potential investment of hundreds of millions of dollars in Character.AI, an AI startup specializing in training chatbot models. According to sources briefed on the matter, Reuters reported that the investment might take the form of convertible notes, further strengthening the ongoing partnership between the two companies. Character.AI currently leverages Google’s cloud services and Tensor Processing Units (TPUs) for model training.
Discussions with Google are ongoing, and the terms of the agreement may undergo alterations, according to the sources.
Why Character.AI is popular
Established by ex-Google staff Noam Shazeer and Daniel De Freitas, Character.AI enables users to interact with virtual renditions of celebrities like Billie Eilish while crafting their personalized chatbots and AI assistants. The platform is accessible at no cost and additionally provides a subscription option. The company reported 100 million monthly website visits within the initial six months of its launch.
Google’s other investments
For an extended period, Google has been actively investing in AI startups. In 2014, the acquisition of London-based DeepMind occurred, and it has since been amalgamated with the Google Brain team to create Google DeepMind.
Allocating $2 billion, the company has invested in Anthropic, a venture utilizing both Google’s cloud services and its latest iteration of TPUs. In parallel, rivals such as Microsoft have infused billions into OpenAI. Notably, the US Federal Trade Commission (FTC) chair Lina Khan recently mentioned that the agency is scrutinizing AI startup investments to assess potential anti-competitive actions.
