The potential deal could value the company at $5 billion to $6 billion,
Character.AI, an artificial intelligence startup founded by former Google employees, is in the early stages of discussions to secure substantial funding, potentially exceeding $5 billion in valuation, Bloomberg informed of on Thursday, citing people familiar with the matter who wished to remain anonymous.
According to the report, the company has emerged as an early pioneer in the field of generative AI tools, garnering substantial interest from potential investors, who may seek additional funding for the firm. However, it is important to note that the ongoing negotiations are in their initial stages and are subject to change or termination.
Character.AI could be worth $10 billion
A company spokesperson declined to comment on the exact valuation, but highlighted Character.AI’s impressive achievements following a $150 million investment in March earlier this year.
“As our community of users grows rapidly, so does the interest in being part of the revolutionary technology we are building and delivering. While our productive conversations continue, any speculation regarding our fundraising or valuation is just that,” the company spokesperson said.
The potential deal could value the company at between $5 billion and $6 billion, sources have indicated, Bloomberg reports. However, two people familiar with the matter revealed that there were talks of bringing the company’s valuation to $10 billion.
Character.AI introduces $10 monthly subscription for users
The company, founded in 2021 by two former Google employees, Noam Shazier and Daniel de Freitas, is still in its early stages, and its business model is evolving.
Earlier this year, Character.AI launched a $10 monthly subscription service called C.AI+, which gives users faster access to their messaging platform. The move is in line with the growing trend of companies developing generative AI, which creates new content such as text and images based on user input.
Character.AI is making waves with its unique chatbot offerings that are capable of impersonating anyone or anything.
The company’s large language model allows users to develop a wide range of fictional characters and celebrity chatbots that are able to engage in text conversations. So far, users have sent millions of messages to iconic Super Mario-like characters, sending “Hello!” Such AI-generated reactions have arisen. It’s me Mario!” Elon Musk, the late iconic music star Michelle Jackson, and the popular film Breaking Bad/Better Call Saul.
Character.AI reaches unicorn status
Since launching in 2021, Character.AI has only held one fundraising event. In March this year, the AI startup company raised $150 million in funding, reaching unicorn status two years after launch.
Andreessen Horowitz led the investment round with participation from other institutional investors. According to AnnouncementThe funding will be used to expand computing capabilities, resulting in a more sophisticated model with advanced logic and greater accuracy, providing users with new features and capabilities and expanding its engineering team.
A few months after the first funding round, the company raised additional funding in July, According for information. Planned fundraising could give the company more leeway as it tries to increase revenue by offering perks paid with membership.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and engaging perspective to her work.
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