Google is in discussions to invest in the AI startup Character. AI

Farhan Shabir
By Farhan Shabir 3 Min Read

Google is in addresses to invest hundreds of millions of bones inCharacter.AI, as the fast-growing artificial intelligence chatbot incipiency seeks capital to train models and keep up with stoner demand, two sources briefed on the matter told Reuters.

The investment, which could be structured as convertible notes, according to a third source, will consolidate the cooperationCharacter.AI formerly had with Google, in which it uses Google’s pall services and Tensor Processing Units( TPUs) to train models.
Google and Character AI didn’t respond to requests for comment.

innovated by former Google workers Noam Shazeer and Daniel De Freitas, Character.AI allows people to sputter with virtual performances of celebrities like Billie Eilish or anime characters while creating their chatbots and AI sidekicks. It’s free to use but offers a subscription model that charges$9.99 a month for druggies who want to skip the virtual line to pierce a chatbot.
‘s chatbots, with colorful places and tones to choose from, have appealed to druggies periods 18 to 24, who contributed about 60 of its website business, according to data from Similarweb. The demographic is helping the company position itself as the purveyor of further delightful particular AI companions, compared to other AI chatbots from OpenAI’s ChatGPT and Google’s Bard.

The company preliminarily said its website had attracted 100 million yearly visits in the first six months since its launch.
is also in addresses to raise equity backing from adventure capital investors, which could value the company at over 5 billion, sources said. In March, it raised 150 million in a backing round led by Andreessen Horowitz at a $ 1 billion valuation.

The addresses with Google are ongoing and terms of the deal could change, said the sources, who requested obscurity as the conversations are private.

Google has been investing in AI startups, including$ 2 billion for model maker Anthropic in the form of convertible notes, on top of its earlier equity investment. Anthropic uses Google’s pall services as well as its rearmost interpretation of TPUs.

That’s part of a recent trend in which big tech pall services providers are striking deals with AI companies to allure them to use certain pall or tackle the computer-ferocious race to make models and serve consumers, including Microsoft(MSFT.O) investments in OpenAI and Google and Amazon’s(AMZN.O) bets on Anthropic.

Federal Trade Commission president Lina Khan said at an event in San Francisco last week that the agency is looking into pall provider investments in AI startups to examine any anti-competitive actions.

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