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’s Content Moderation Contractor to Cut 2,000 Jobs in Barcelona

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
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Meta’s Content Moderation Contractor to Cut 2,000 Jobs in Barcelona

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)

Canadian-based tech company Telus sent home as many as 2,000 people from its content moderation center in Barcelona after Facebook owner Meta Platforms severed its contract, local unions CCOO and UGT said.

The company - operating locally as CCC Barcelona Digital Services - emailed its workers on Thursday placing them on gardening leave saying a client warned on April 1 it would suspended services.

The email, which Reuters had access to, did not specify who the client was, but UGT and CCOO said Telus' client was Meta.

One former and one current employee, who requested anonymity as they signed non-disclosure agreements, said the team was moderating content for Meta.

"Our clients are diversifying their presence and transferring their services to other locations," Telus said, adding the contract continued. The company will provide support to all the affected team members during negotiations with the unions.

A Meta spokesperson said the company has moved the services that were being performed from Barcelona to other locations and the company is not reducing its content review efforts.

Meta invested billions and hired thousands of content moderators globally over the years to police sensitive content, but in January it scrapped its US fact-checking program, following the election of President Donald Trump.

It also said it will stop proactively scanning for hate speech and other types of rule-breaking, reviewing such posts only in response to user reports.

Employees were placed on leave, with full salaries but no work to carry out, while Telus negotiates severance with unions, the email sent to workers said.

The company suspended its operations at noon on Thursday and asked employees at work to leave the office, located in Barcelona's landmark Glories tower downtown.

The team in Barcelona included content moderation services in Catalan, Dutch, French, Hebrew, Portuguese and Spanish, according to the former employee.

Other content moderation centers in countries such as Bulgaria, Colombia and Portugal that used to collaborate with the staff in Barcelona, the current employee said, although a Telus spokesperson said some of these centers are run by other companies.