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AI high: Google is in talks to invest millions into Character.ai

AI high: Google is in talks to invest millions into Character.ai

AI’m feeling lucky

Google is reportedly lining up an investment worth “hundreds of millions of dollars” in Character.ai, just weeks after the company agreed to push some $2 billion into another AI startup, Anthropic.

Character.ai, which raised $150 million in a funding round that valued the company at $1 billion earlier this year, already has ties to the search giant, having been founded by former Google employees who’d previously worked on its large language models.

As with competitors like ChatGPT, monthly visits to the platform have dropped modestly since the summer — per data from Similarweb via Variety — but its users are still giving up a lot of time pretend-talking-to everyone from Tony Soprano to Napoleon Bonaparte.

Characterful

Developers have rushed to imbue chatbots with distinct “personas” and character traits to distinguish them from the ever-growing crowd of automatons. Last month, for example, Meta announced its range of AI with in-built “personality” on Messenger, while Elon Musk’s xAI unveiled Grok, a chatbot with a "rebellious streak”, in early November.

On this front, Character.ai has been several steps ahead of the game for a while — and users can’t seem to get enough. Indeed, since its launch last September, the chatbot’s been generating over 1 billion words each day, delivered by bots resembling celebrities, fictional characters, and historical figures. The chatbot’s users spend almost 5x longer in a typical interaction than ChatGPT fans spend with the OpenAI bot, with desktop and mobile Character.ai users logging an astonishing 33 minutes on the platform per visit in August.

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Meta projected 10% of 2024 revenue came from scams and banned goods, Reuters reports

Meta has been making billions of dollars per year from scam ads and sales of banned goods, according internal Meta documents seen by Reuters.

The new report quantifies the scale of fraud taking place on Meta’s platforms, and how much the company profited from them.

Per the report, Meta internal projections from late last year said that 10% of the company’s total 2024 revenue would come from scammy ads and sales of banned goods — which works out to $16 billion.

Discussions within Meta acknowledged the steep fines likely to be levied against the company for not stopping the fraudulent behavior on its platforms, and the company prioritized enforcement in regions where the penalties would be steepest, the reporting found. The cost of lost revenue from clamping down on the scams was weighed against the cost of fines from regulators.

The documents reportedly show that Meta did aim to significantly reduce the fraudulent behavior, but cuts to its moderation team left the vast majority of user-reported violations to be ignored or rejected.

Meta spokesperson Andy Stone told Reuters the documents were a “selective view” of internal enforcement:

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either.”

Per the report, Meta internal projections from late last year said that 10% of the company’s total 2024 revenue would come from scammy ads and sales of banned goods — which works out to $16 billion.

Discussions within Meta acknowledged the steep fines likely to be levied against the company for not stopping the fraudulent behavior on its platforms, and the company prioritized enforcement in regions where the penalties would be steepest, the reporting found. The cost of lost revenue from clamping down on the scams was weighed against the cost of fines from regulators.

The documents reportedly show that Meta did aim to significantly reduce the fraudulent behavior, but cuts to its moderation team left the vast majority of user-reported violations to be ignored or rejected.

Meta spokesperson Andy Stone told Reuters the documents were a “selective view” of internal enforcement:

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either.”

$350B

Google wants to invest even more money into Anthropic, with the search giant in talks for a new funding round that could value the AI startup at $350 billion, Business Insider reports. That’s about double its valuation from two months ago, but still shy of competitor OpenAI’s $500 billion valuation.

Citing sources familiar with the matter, Business Insider said the new deal “could also take the form of a strategic investment where Google provides additional cloud computing services to Anthropic, a convertible note, or a priced funding round early next year.”

In October, Google, which has a 14% stake in Anthropic, announced that it had inked a deal worth “tens of billions” for Anthropic to access Google’s AI compute to train and serve its Claude model.

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