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Google in Talks to Invest Hundreds of Millions in AI Firm Character

Alphabet's Google is in discussions to invest hundreds of millions in Character AI, a rapidly expanding chatbot firm. The funds will be used for training models and meeting user demand. The investment may be structured as convertible notes, strengthening the existing partnership.

Character AI, founded by former Google workers, enables users to create chatbots and converse with virtual representations of celebrities. It's popular among users aged 18-24, claiming 100 million monthly visits within the first six months.

Additionally, Character AI is in talks with venture capital investors, aiming for a valuation above $5 billion. Google, known for investing in AI firms, has previously invested $2 billion in convertible notes in model manufacturer Anthropic.

Recent investigations by the U.S. Federal Trade Commission scrutinize cloud providers' involvement in AI firms for potential anti-competitive practices.