Character, a Chatbot Pioneer, Mulls Deals With Rivals Google and Meta
Character.AI chatbots that take on whimsical or historical personas were an early hit with consumers. But bigger rivals have started to encroach on its turf, raising questions about its future.
A year ago, Character.AI had the wind at its back. Founded by two artificial intelligence pioneers from Google, the startup had launched AI chatbots that offered what its far larger rivals hadn’t yet provided: something fun.
Millions of people had signed up for its website and apps, intrigued by the chance to text with facsimiles of anime characters, TV personalities and historical figures in hyper-realistic roleplay. Executives discussed raising additional funding four months after Andreessen Horowitz and others had sunk $150 million into the startup at a $1 billion valuation.
That head start has since receded. In its place are signs Character, founded in November 2021, could follow other AI startups into the arms of a larger technology company.