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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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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 

Tesla CEO Elon Musk said the US automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.

Samsung shares rose more than 4% after the news.

"Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate," Musk said in a post on X on Monday.

If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," Musk said on his social media platform.

Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.

Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.

The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.

Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business.

Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.63 billion) in the first half of the year.

Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers.

The Samsung-Tesla deal may also be significant for South Korea, which is seeking US partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% US tariffs.

Samsung is grappling to boost production yields of its latest 2-nanometer technology, but the order is unlikely to involve the cutting-edge tech, said Lee Min-hee, an analyst at BNK Investment & Securities.

Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said.