Google in Talks To Invest in Artificial Intelligence Startup Character.AI

Google in Talks To Invest in Artificial Intelligence Startup Character.AI

In ongoing discussions, Google is considering a substantial investment in Character.AI, an AI startup, potentially totaling hundreds of millions of dollars. This move follows Google’s recent $2 billion investment in Anthropic in October 2023, highlighting the tech giant’s commitment to expanding its artificial intelligence portfolio.

The intended investment in Character.AI, likely in the form of convertible notes, aims to facilitate the development of new chatbot models. If finalized, this deal will reinforce the existing partnership between the two companies. Character.AI currently leverages Google’s cloud services and tensor processing units for its AI training operations.

Founded by veterans from Google’s DeepMind project, Character.AI specializes in creating chatbots that emulate characteristics of historical figures and famous fictional characters, particularly appealing to the 18 to 24 age demographic. Earlier this year, the startup secured a $150 million investment and is now seeking additional investments in exchange for equity, valuing Character.AI at $5 billion.

The collaboration between Character.AI and Google, initiated in May 2023, played a crucial role in establishing the AI startup’s core infrastructure. It involved the implementation of Google Cloud Spanner, leading to a significant performance boost in subsequent months, reaching several petaflops.

This potential investment aligns with the broader trend of major tech companies seeking substantial stakes in emerging AI firms, intensifying competition since the introduction of ChatGPT in 2022. The tech industry’s strategic investments underscore the significance of staying at the forefront of AI advancements.