Sources: Google in Talks to Invest in AI Startup Character.AI

FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann/File Photo
FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann/File Photo
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Sources: Google in Talks to Invest in AI Startup Character.AI

FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann/File Photo
FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann/File Photo

Alphabet's Google is in talks to invest hundreds of millions of dollars in Character.AI, as the fast growing artificial intelligence chatbot startup seeks capital to train models and keep up with user demand, two sources briefed on the matter told Reuters.
The investment, which could be structured as convertible notes, according to a third source, will deepen the existing partnership Character.AI already has with Google, in which it uses Google's cloud services and Tensor Processing Units (TPUs) to train models.
Google and Character AI did not respond to requests for comment.
Founded by former Google employees Noam Shazeer and Daniel De Freitas, Character.AI allows people to chat with virtual versions of celebrities like Billie Eilish or anime characters, while creating their own chatbots and AI assistants. It is free to use, but offers subscription model that charges $9.99 a month for users who want to skip the virtual line to access a chatbot.
Character.AI's chatbots, with various roles and tones to choose from, have appealed to users ages 18 to 24, who contributed about 60% of its website traffic, according to data from Similarweb. The demographic is helping the company position itself as the purveyor of more fun personal AI companions, compared to other AI chatbots from OpenAI's ChatGPT and Google's Bard.
The company previously said its website had attracted 100 million monthly visits in the first six months since its launch.
Character.AI is also in talks to raise equity funding from venture capital investors, which could value the company at over $5 billion, sources said. In March, it raised $150 million in a funding round led by Andreessen Horowitz at $1 billion valuation.
The talks with Google are ongoing and terms of the deal could change, said the sources, who requested anonymity as the discussions are private, Reuters reported.
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 cloud services as well as its latest version of TPUs.
That is part of a recent trend in which big tech cloud services providers are striking deals with AI companies to entice them to use certain cloud or hardware in the computer-intensive race to build models and serve consumers, including Microsoft investments in OpenAI and Google and Amazon's bets on Anthropic.



Nintendo Offers New Switch 2 Details ahead of June 5 Launch

People stand in front of Nintendo's logo in Tokyo, Japan January 13, 2017. REUTERS/Kim Kyung-Hoon/File Photo
People stand in front of Nintendo's logo in Tokyo, Japan January 13, 2017. REUTERS/Kim Kyung-Hoon/File Photo
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Nintendo Offers New Switch 2 Details ahead of June 5 Launch

People stand in front of Nintendo's logo in Tokyo, Japan January 13, 2017. REUTERS/Kim Kyung-Hoon/File Photo
People stand in front of Nintendo's logo in Tokyo, Japan January 13, 2017. REUTERS/Kim Kyung-Hoon/File Photo

Nintendo has announced a June 5 launch date for its latest gaming console, the Switch 2, which will introduce interactive chat and screenshare functions to connect gamers.

At its 60-minute Nintendo Direct presentation, the company revealed a more vibrant display on the Switch 2, a larger screen and several games that will launch with the console.

Central to its updated system is a new “C” button on its Joy-Con controller, which will launch a new “GameChat” feature that allows you to “communicate with friends and family while playing a game,” and let you share your game screen with other players. A built-in microphone will also allow you to chat with other gamers, The AP reported.

Perhaps the most contemporary function yet for the Switch 2 is the ability to use the Joy-Con controllers like a computer mouse. The developer displayed multiple ways to use the new function in games, such as angling a club in a golf game.

Wednesday's presentation led off with an extended look at a new Mario Kart game that saw in-game characters doing flips, tricks and rail grinds. The developer also unveiled a new James Bond game, dubbed Project 007, revisiting a classic Nintendo 64 console hit revered by many first-person shooter game fans.

The new console will be backwards compatible — able to play physical and digital Switch games — but users will need to purchase a new type of SD memory card for the Switch 2. The presentation revealed that normal SD cards will not be compatible with the system, but data from the original Switch can be transferred to the new console.

Nintendo plans to host “Switch 2 Experience” events in several countries, where gamers can get a hands-on experience with the new system. Those events are planned for cities such as Los Angeles, New York, London and Paris beginning this month.