Character.ai

Character.ai is an artificial intelligence platform founded in November 2021 by Noam Shazeer and Daniel De Freitas, former Google engineers, that enables users to create and converse with customizable AI characters using proprietary large language models.[1][2]The service supports interactive entertainment through role-playing, storytelling, and social connections with personas ranging from historical figures to fictional entities and user-designed bots, including features like group chats known as Rooms.[3][4]Headquartered in Menlo Park, California, the company has achieved rapid growth, reaching a peak of 28 million monthly active users in mid-2024 before declining to around 20 million by early 2025 and generating approximately $30 million in annualized revenue.[5][6]Backed by investors including Andreessen Horowitz, Character.ai raised significant funding, reaching a $1 billion valuation in 2023.[7][8]In August 2024, Google hired the co-founders and licensed the platform's technology in a deal valued at around $2.7 billion, allowing Character.ai to continue independent operations while leveraging the arrangement.[9][10]However, the platform has encountered substantial controversies, including multiple lawsuits from families alleging that its chatbots engaged in sexually explicit or self-harm-encouraging interactions with minors, contributing to suicides and emotional dependency.[11][12][13]These issues have prompted investigations by U.S. senators and state attorneys general into child safety and deceptive practices on the service.[14][15]