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AI Chatbot Startup Character.AI Launches New Calls Feature

Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. (Reuters)
Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. (Reuters)
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AI Chatbot Startup Character.AI Launches New Calls Feature

Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. (Reuters)
Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. (Reuters)

Artificial Intelligence chatbot startup Character.AI said on Thursday it has launched a calls feature that allows users to have voice conversations with their AI characters, ratcheting up efforts to compete with rivals including OpenAI.

AI-boom has prompted startups to release new features to their chatbots as competitors such as Microsoft-backed OpenAI, Google and Amazon.com-backed Anthropic are looking to gain market share by engaging new users.

The availability of free two-way voice calls on Character.AI's app has come following OpenAI's announcement on Tuesday that the ChatGPT maker's rollout of the advanced voice mode of its latest model GPT-4o is delayed by one month.

Character.AI, co-founded by Noam Shazeer, who helped invent "transformer" AI architecture while at Google that underpins systems like Gemini and ChatGPT, enables users to create customized AI companions with specific personalities and values.

The Menlo Park, California-based startup said the new calls feature prompted more than 20 million calls from over 3 million unique users in its early rollout, suggesting a strong engagement.

Character.AI launched Character Voice, a suite of features that allows users to hear characters speaking to them in one-on-one chats, for all users in March.

Alphabet's Google was in talks to invest hundreds of millions of dollars in Character.AI last year, two sources briefed on the matter had told Reuters.

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European Union Accuses Facebook Owner Meta of Breaking Digital Rules with Paid Ad-free Option

FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
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European Union Accuses Facebook Owner Meta of Breaking Digital Rules with Paid Ad-free Option

FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo

European Union regulators accused social media company Meta Platforms on Monday of breaching the bloc's new digital competition rulebook by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.
Meta has been giving European users the option since November of paying for ad-free versions of Facebook and Instagram as a way to comply with the continent’s strict data privacy rules, The Associated Press said.
Desktop browser users can pay about 10 euros ($10.50) a month while iOS or Android users will pay roughly 13 euros to avoid being targeted by ads based on their personal data.
The US tech giant rolled out the subscription option after the European Union’s top court ruled that under strict EU data privacy rules, Meta must first get consent before showing ads to users.
The European Commission, the EU's executive arm, said preliminary findings of its investigation show that Meta's “pay or consent” advertising model was in breach of the 27-nation bloc’s Digital Markets Act.
The commission said Meta's model doesn't allow users to exercise their right to “freely consent” to allowing their personal data to be used to target them with online ads.
The commission had opened its investigation shortly after the rulebook, also known as the DMA, took effect in March. It's a sweeping set of regulations aimed at preventing tech “gatekeepers” from cornering digital markets under threat of heavy financial penalties.
“The DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access,” European Commissioner Thierry Breton, who oversees the bloc's digital policy, said in a statement.
Meta now has a chance to respond to the commission, which must wrap up its investigation by March 2025. The company could face fines worth 10% of its annual global revenues, which could run into the billions of euros.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA," Meta said in a statement. "We look forward to further constructive dialogue with the European Commission to bring this investigation to a close.”
Under the Digital Markets Act, Meta is classed as one of seven online gatekeepers while Facebook, Instagram and its ad business are among about two dozen “core platform services” that need the highest level of scrutiny.