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.



Meta Hit with Fines by Türkiye after Refusing to Restrict Content on Facebook, Instagram

Instagram app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Instagram app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
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Meta Hit with Fines by Türkiye after Refusing to Restrict Content on Facebook, Instagram

Instagram app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Instagram app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Meta said it has been hit with a hefty fine for resisting Turkish government demands to limit content on Facebook and Instagram.

“We pushed back on requests from the Turkish government to restrict content that is clearly in the public interest, and have been fined by them as a consequence,” the company said in a statement.

The social media company did not disclose the size of the fine, except to say it was “substantial” and did not provide any more details about the content in question. The Associated Press has approached the Turkish government for comment.

“Government requests to restrict speech online alongside threats to shut down online services are severe and have a chilling effect on people’s ability to express themselves,” Meta said.

In recent years the Turkish government has increasingly sought to bring social media companies under its control. When protests erupted following the March 19 arrest of opposition Istanbul Mayor Ekrem Imamoglu, many social media platforms such as X, Instagram and Facebook were blocked.

More than 700 individual X accounts, including those belonging to journalists, media outlets, civil society organizations and student groups, were blocked, according to the Media and Law Studies Association. X said it would object.

Dozens have been arrested for social media posts deemed to be supporting the protests.