The tech giant is in discussions to inject hundreds of millions into the artificial intelligence (AI) startup to fund its mission to train chatbot models, Reuters reported Friday (Nov. 10), citing sources familiar with the matter.
Another source has indicated that the investment in Character.AI could potentially be structured as convertible notes. This move aims to reinforce the existing collaboration between Google and Character.AI, wherein the latter utilizes Google’s cloud services and tensor processing units (TPUs) for training its AI.
Character.AI has gained popularity, particularly among younger users constituting 60% of its web traffic, with its character-based chatbots. This positions the company as a creator of a more engaging and “fun” AI companion compared to competitors like ChatGPT or Google’s Bard.
Founded by veterans of Google’s AI project DeepMind, Character.AI secured $150 million earlier in the year at a valuation of $1 billion. This funding is earmarked for the development of AI-powered chatbots, some of which are modeled on fictional and historical characters and celebrities, including AI versions of Elon Musk, Nintendo’s Mario, the late Michael Jackson, and Saul Goodman from the TV shows “Breaking Bad” and “Better Call Saul.” The tech giant
In the broader context of recent AI developments, OpenAI’s plans to launch a store for selling GPT models and rumors of Amazon working on a large language model code-named Olympus, double the size of OpenAI’s, have also been notable. Amazon’s efforts, as seen with its stake in Anthropic, suggest a desire to be self-reliant for innovations while acknowledging the demand for cutting-edge AI solutions among its customer base.
The concept of AI co-pilots is gaining traction, with their value lying in speed, scalability, and the ability to eliminate mundane tasks from human workflows. Consumers, on average, interact with about five AI-enabled technologies each week, according to research from the PYMNTS Intelligence report on “Consumer Interest in Artificial Intelligence.” These interactions encompass tasks such as web browsing, using navigation apps, and reviewing online product recommendations.