Character.ai abandons AI development

Character.ai is changing its strategy following a $2.7 billion deal with Google. As new interim CEO Dominic Perella told the Financial Times, the company is abandoning the costly development of its own AI models. Instead, Character.ai will focus on improving its popular chatbot products that simulate conversations with various characters and celebrities. After the Google deal, which saw 20 percent of employees move to Google, the company introduced an unusual ownership structure as a cooperative. With 20 million monthly active users, Character.ai now plans to create the “next big platform.”