Founded Year

2021

Stage

Series A | Alive

Total Raised

$190M

Valuation

$0000 

Last Raised

$190M | 2 yrs ago

Mosaic Score
The Mosaic Score is an algorithm that measures the overall financial health and market potential of private companies.

+20 points in the past 30 days

About Character.AI

Character.AI creates artificial intelligence for conversational purposes within the technology sector. The company offers chatbots that can engage in conversations, understand user inputs, and remember past interactions, providing a tailored experience for each user. These chatbots are intended for users seeking virtual companions. It was founded in 2021 and is based in Menlo Park, California.

Headquarters Location

700 El Camino Real #1152, Suite 120

Menlo Park, California, 94025,

United States

800-273-8255

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ESPs containing Character.AI

The ESP matrix leverages data and analyst insight to identify and rank leading companies in a given technology landscape.

EXECUTION STRENGTH ➡MARKET STRENGTH ➡LEADERHIGHFLIEROUTPERFORMERCHALLENGER
Enterprise Tech / Sales & Customer Service

The AI companions market provides platforms that create conversational agents capable of engaging in natural language interactions with humans. These solutions use advanced language models to understand context, remember past interactions, and deliver personalized responses across text, voice, and visual interfaces. AI companions include applications like virtual assistants, customer support agent…

Character.AI named as Leader among 7 other companies, including Microsoft, Soul Machines, and Woebot Health.

Character.AI's Products & Differentiators

    Character.AI

    Character.AI is one of the world’s leading personal AI platforms. Founded in 2021 by AI pioneers Noam Shazeer and Daniel De Freitas, Character.AI is a full-stack AI company with a globally scaled direct-to-consumer platform. Character.AI is uniquely centered around people, letting users personalize their experience by interacting with AI “Characters.”

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Expert Collections containing Character.AI

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Character.AI is included in 6 Expert Collections, including Unicorns- Billion Dollar Startups.

U

Unicorns- Billion Dollar Startups

1,276 items

D

Digital Content & Synthetic Media

516 items

The Synthetic Media collection includes companies that use artificial intelligence to generate, edit, or enable digital content under all forms, including images, videos, audio, and text, among others.

A

AI 100 (All Winners 2018-2025)

100 items

G

Generative AI 50

50 items

CB Insights' list of the 50 most promising private generative AI companies across the globe.

G

Generative AI

2,314 items

Companies working on generative AI applications and infrastructure.

A

Artificial Intelligence

10,047 items

Latest Character.AI News

Meta’s AI Chatbots: Proactive Texts & New Features

Jul 7, 2025

Meta is pushing the boundaries of artificial intelligence with a new feature allowing AI chatbots to initiate conversations with users, a move revealed through leaked documents. These aren’t passive assistants waiting for prompts; they actively remember past interactions and suggest new topics, potentially reshaping how we interact with social media. The Rise of Proactive AI Companions Developed within Meta’s AI Studio, these chatbots can maintain ongoing dialogue with users who have engaged in at least five messages within a 14-day period. However, the interaction isn’t indefinite. If a user doesn’t respond to a follow-up message, the chatbot ceases its unsolicited outreach. Users retain control over their creations, with the option to keep them private or share them across Meta’s platforms – Stories, profiles, or direct links. Meta positions this feature as a way to foster “deeper and more fun” conversations. This approach mirrors strategies employed by companies like Character.AI and Replika, which specialize in creating AI “companions” designed to simulate human-like interaction through proactive engagement. The goal is to create a sense of ongoing connection, but this pursuit isn’t without potential pitfalls. Safety Concerns and Legal Challenges The development arrives amidst growing scrutiny of AI safety. Character.AI, a competitor in the AI companion space, is currently facing a lawsuit following allegations that one of its bots contributed to the suicide of a 14-year-old boy. This tragic case underscores the potential for harm when vulnerable individuals interact with AI systems that can offer advice or emotional support without professional oversight. When questioned about safety protocols, Meta directs users to disclaimers stating that its chatbots may provide inaccurate or inappropriate information and should not be relied upon for critical decisions, such as those related to medical or legal matters. ( KnowTechie , via Business Insider ) A significant concern revolves around accessibility for children. Currently, Meta has not implemented age restrictions for interacting with these chatbots. This lack of safeguards raises questions, particularly in light of legislation like that in Tennessee, which restricts teens’ access to certain AI interactions. ( KnowTechie ) Did You Know? The concept of AI companions isn’t new. Early iterations of chatbot technology, like ELIZA in the 1960s, aimed to simulate conversation, but lacked the sophisticated memory and proactive capabilities of today’s AI. The Profit Motive Behind Proactive AI While Meta frames the chatbots as a tool for combating loneliness, many analysts believe a significant driver is financial gain. Leaked documents suggest Meta anticipates substantial revenue from its AI products, projecting $2–3 billion in 2025 and a staggering $1.4 trillion by 2035. This revenue is expected to be generated primarily through advertising and paid subscriptions. Although Meta hasn’t confirmed specific monetization strategies, the potential for integrating these chatbots with advertising or its virtual reality platform, Horizon, is clear. The company is actively exploring avenues to transform AI chatbots into a major income stream. What are your thoughts on AI proactively initiating conversations? Do you see this as a positive step towards more engaging online experiences, or a potential invasion of privacy? The development of these proactive AI chatbots represents a pivotal moment in the evolution of social media. It’s a move that could redefine user engagement, but also raises critical questions about safety, ethics, and the future of human-computer interaction. Frequently Asked Questions About Meta’s AI Chatbots What are Meta’s AI chatbots? Meta’s AI chatbots are user-created AI entities within Meta’s AI Studio that can proactively initiate conversations with users, remembering past interactions and suggesting new topics. How do Meta AI chatbots decide when to message users? The chatbots will continue messaging if a user has sent at least five messages to them within the last 14 days. If a user ignores the first follow-up message, the chatbot will stop initiating contact. Are there any age restrictions for using Meta’s AI chatbots? Currently, Meta has not implemented any age restrictions for interacting with its AI chatbots, raising concerns about potential risks for younger users. What safety measures is Meta taking with these AI chatbots? Meta relies on disclaimers stating that the chatbots may provide inaccurate or inappropriate advice and should not be used as a substitute for professional guidance. What is Meta’s projected revenue from AI products? Leaked documents suggest Meta anticipates generating $2–3 billion from AI products in 2025 and potentially up to $1.4 trillion by 2035, primarily through advertising and subscriptions. Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute professional advice. Readers should consult with qualified professionals for specific guidance related to their individual circumstances. Share this article with your network to spark a conversation about the future of AI and its impact on our digital lives! Join the discussion in the comments below – what are your biggest concerns and hopes for this new technology? Share this:

Character.AI Frequently Asked Questions (FAQ)

  • When was Character.AI founded?

    Character.AI was founded in 2021.

  • Where is Character.AI's headquarters?

    Character.AI's headquarters is located at 700 El Camino Real, Menlo Park.

  • What is Character.AI's latest funding round?

    Character.AI's latest funding round is Series A.

  • How much did Character.AI raise?

    Character.AI raised a total of $190M.

  • Who are the investors of Character.AI?

    Investors of Character.AI include SV Angel, Andreessen Horowitz, Elad Gil, A.Capital, Nat Friedman and 3 more.

  • Who are Character.AI's competitors?

    Competitors of Character.AI include Nomi, Reflection AI, CHAI AI, Recogni, Personal AI and 7 more.

  • What products does Character.AI offer?

    Character.AI's products include Character.AI and 2 more.

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Compare Character.AI to Competitors

Replika Logo
Replika

Replika focuses on artificial intelligence (AI) and offers a chatbot service that allows for conversations and provides mental health assistance. It provides an AI companion that interacts with users through text, voice, and augmented reality experiences. It was founded in 2015 and is based in San Francisco, California.

Aigo.Ai Logo
Aigo.Ai

Aigo.ai focuses on the development of Artificial General Intelligence (AGI) through its Cognitive AI technologies. The company offers a Cognitive AI engine that utilizes Integrated Neuro-Symbolic Architecture (INSA) to enable real-time incremental autonomous learning, aiming to model human thought and reasoning processes. Aigo.ai serves sectors that require AI solutions, such as the call center industry. It was founded in 2013 and is based in Torrance, California.

CHAI AI Logo
CHAI AI

CHAI AI is a conversational AI platform in the technology sector, focused on the development and deployment of large language models. The company provides a platform where users can create and interact with AI chatbots, utilizing in-house trained LLMs and reinforcement learning techniques to improve user interaction. CHAI AI serves the social AI engagement sector, offering tools and technologies that allow developers to contribute to and utilize the platform's ecosystem. It was founded in 2021 and is based in Palo Alto, California.

Pypestream Logo
Pypestream

Pypestream specializes in AI-powered customer experience automation within various business sectors, including insurance, telecommunications, retail, and more. The company offers an omnichannel platform that leverages conversational AI to provide personalized, efficient customer service and support through a library of microapps. Pypestream's solutions are primarily utilized by industries such as insurance, telecommunications, retail, quick service restaurants, travel, hospitality, and real estate. It was founded in 2015 and is based in New York, New York.

N
Nomi

Nomi provides artificial intelligence (AI) companionship with features related to emotional intelligence, creativity, and memory within the technology sector. The company offers a platform for users to engage with AI companions that can remember personal preferences and can partake in roles such as friends, mentors, or partners. Nomi's AI companions support relationships through text and voice chats, along with creative activities such as AI art generation and roleplaying scenarios. It was founded in 2020 and is based in Baltimore, Maryland.

Kasisto Logo
Kasisto

Kasisto focuses on conversational artificial intelligence solutions, primarily in the banking and finance sector. The company offers a platform that provides intelligent digital assistants, designed to facilitate accurate, human-like conversations and empower teams with financial knowledge. Kasisto primarily serves global financial institutions, regional banks, community banks, and credit unions. It was founded in 2013 and is based in New York, New York.

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