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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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Oracle rises after Ives initiates coverage

Oracle extended its premarket gains Friday after Wedbush’s Dan Ives initiated coverage with an “outperform” rating and a $225 price target — about 25% upside to its pre-initiation level — calling the enterprise software and cloud infrastructure company a “foundational infrastructure provider for the AI revolution.”

Ives argues investors are misreading Oracle’s heavy capital spending and negative free cash flow as risky, despite being backed by a massive $553 billion backlog of contracted demand. He says the company’s “secret sauce” is a two-part strategy: building high-performance cloud infrastructure for AI workloads while connecting those models directly to companies’ own data.

“We believe Oracle is in the early innings of a significant repositioning as it executes on this generational opportunity,” Ives wrote.

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OpenAI releases ChatGPT 5.5 — more complex “knowledge work” for fewer tokens

Right on the heels of Anthropic’s Claude Opus 4.7, OpenAI has also released the next incremental improvement to its flagship frontier model.

OpenAI says that ChatGPT 5.5 performs better on complex coding and data analysis tasks, and more carefully follows instructions, even when the instructions are vague.

Importantly, this gain in capability does not mean developers and companies have to shell out for more tokens (as is the case with Claude Opus 4.7) — the model uses fewer tokens that ChatGPT 5.4.

OpenAI says the new model has strengthened safeguards to ensure that the model’s strong cybersecurity capabilities aren’t used for malicious attacks.

Importantly, this gain in capability does not mean developers and companies have to shell out for more tokens (as is the case with Claude Opus 4.7) — the model uses fewer tokens that ChatGPT 5.4.

OpenAI says the new model has strengthened safeguards to ensure that the model’s strong cybersecurity capabilities aren’t used for malicious attacks.

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