Google to Invest Hundreds of Millions in Character.AI, Strengthening AI Portfolio

Google has announced an investment in Character.AI, a company that creates chatbots that mimic the characteristics of famous people. The investment is part of Google’s larger focus on AI startups, and it comes at a time when chatbots are becoming increasingly popular, especially among young adults.

Character.AI’s chatbots are unique in that they are not simply programmed to respond to questions and prompts in a generic way. Instead, they are designed to mimic the specific personality and communication style of the person they are based on. This allows users to have more natural and engaging conversations with the chatbots.

The investment in Character.AI follows Google’s $2 billion investment in Anthropic, indicating the tech giant’s growing focus on AI startups and its commitment to the AI space. This move aligns with the overall trend of big tech companies seeking significant stakes in emerging artificial intelligence companies, reflecting the heated race that began following the launch of ChatGPT in 2022.

The company’s chatbots are popular with young adults, who use them for a variety of purposes, including entertainment, education, and companionship. For example, users can chat with a chatbot based on their favorite celebrity to learn more about their life and career, or they can chat with a chatbot based on a historical figure to learn about history in a more engaging way.

Google’s investment in Character.AI will be used to develop new chatbot models and to expand the company’s reach. The company plans to launch new chatbots based on a variety of different people, and it also plans to make its chatbots available on more platforms.