Elon Musk's xAI Considers Acquiring Character.AI Amid Growing AI Demand

TapTechNews August 1st news, according to TheInformation's report on the 31st local time, Elon Musk's artificial intelligence startup xAI is considering acquiring the chatbot manufacturer Character.AI as it is seeking more ways to test the Grok chatbot.

The report also points out that this discussion may not lead to a deal, but the internal discussion of the xAI company shows that small AI startups like Character.AI still need to face the high cost of training and running models when competing with the wealthy big fish, so this type of cooperation may become more and more common in the future.

Currently, as the demand for AI is increasing day by day, major technology giants have begun to compete for scarce AI resources, and most of these companies will choose to cooperate with AI startups. In May this year, there were media reports that Meta had discussions on cooperation with Character.AI. In addition, xAI also had negotiations on a cooperative relationship with Character.AI at that time, but no agreement has been reached yet.

TapTechNews note: Character.AI was founded by former Google employees Noam Shazeer and Daniel DeFreitas. Users can create their own chatbots and AI assistants, which are divided into paid and free versions, and the paid version costs $9.99 per month (currently about 72 RMB).

Character.AI's chatbots have multiple roles and tones to choose from, and users aged 18-24 contribute about 60% of the website traffic.

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In addition to Elon Musk's xAI, it is reported that Meta is also trying to cooperate with Character.ai