Google is currently in talks to invest in Character, as reported by Alphabeth. Character, an AI business based in Israel, was established by former Google Brain employees Danny Shazeer and Daniel De Freitas. The anticipated investment by the tech giant is expected to amount to “hundreds of millions of dollars.” AI’s objective, as indicated by sources familiar with the matter, is to train models to cater to customer needs.
Furthermore, it has been suggested by a third source that this investment could fortify the existing relationship and potentially involve the issuance of convertible notes. AI already collaborates with Google by leveraging the company’s cloud services and Tensor Processing Units (TPUs) to train models.
One of the key features of Character, according to data from Similarweb, is the ability for users to engage with virtual versions of celebrities like Billie Eilish or fictional characters, in addition to creating their personalized chatbots and AI assistants. While the service is free to use, individuals opting for a chatbot without virtual queueing are required to subscribe at a monthly fee of $9.99.
The platform has garnered significant interest from individuals aged 18 to 24, constituting approximately 60% of the website’s traffic, due to its diverse range of roles and tones. This demographic preference positions the company favorably against competitors like Google’s Bard and OpenAI ChatGPT, solidifying its status as a provider of engaging private AI companions.
In terms of performance metrics, Character reported attracting 100 million regular visitors to its website within the first six months of its launch. The startup is also exploring options for equity funding from venture capitalists, with potential valuations exceeding \(5 billion, as per insider sources cited in an exclusive Reuters report. Notably, in a funding round led by Andreessen Horowitz in March, the company secured \)150 million, valuing it at $1 billion.
Google’s investment portfolio extends beyond Character, with recent funding activities including $2 billion in convertible notes for model developer Anthropic. Additionally, Google has shown interest in Israeli enterprises such as Waze, BreezoMeter, and Siemplify, either through investments or acquisitions.
