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Character.AI’s $200 Million Bet That Chatbots Are The Future Of Entertainment - Forbes   

Inside Character.AI’s disheveled Palo Alto, California headquarters, employees at first appear to be hard at work, glued to their computer monitors. But rather than coding, many of them are engrossed in lively group chats with their colleagues and the AI chatbot characters that Character has become known for. Now, thanks to a new group chat function the startup launched Wednesday, they were chatting with work friends along with bots that anyone can build to create the illusion that you’re actually talking to the likes of Napoleon Bonaparte, Tony Stark or Lucifer.

“The feature was good enough that people stopped working sometimes to use it,” cofounder Daniel De Freitas told Forbes. De Freitas, the company’s president, has been particularly partial to gathering team members together to play Ship AI, a chatbot programmed to act like a text-based adventure game that lets group chat participants pretend to be astronauts exploring outer space.

The group chat feature is Character.AI’s latest move in cofounder and CEO Noam Shazeer’s bet that people will want to interact with a variety of different chatbot personas, rather than having a single, all-encompassing AI companion. By allowing the company’s subscribers, who pay $9.99 per month, to interact with each other and some of the startup’s 18 million AI bots in chats at the same time, Character is hoping to establish dominance as the go-to app for AI-powered entertainment while adding to its immediate revenue stream. Shazeer said that after “some period of time,” the company plans to make the feature free “because our goal is to empower everyone with AGI,” or artificial general intelligence.

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