
Character.AI
Founded Year
2021Stage
Series A | AliveTotal Raised
$190MValuation
$0000Last Raised
$190M | 2 yrs agoMosaic Score The Mosaic Score is an algorithm that measures the overall financial health and market potential of private companies.
-25 points in the past 30 days
About Character.AI
Character.AI focuses on developing advanced artificial intelligence, operating within the domain of virtual communication and AI technology. The company offers super-intelligent chatbots that are designed to engage in interactive conversations, providing a personalized and responsive virtual chatting experience. Its chatbots are capable of understanding and remembering user interactions, enhancing overall engagement. It was founded in 2021 and is based in Menlo Park, California.
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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.
The AI companions market utilizes artificial intelligence to create conversational agents capable of engaging in natural language conversations with humans. These agents are designed to understand and respond to user queries, providing personalized solutions and recommendations. The technology behind these agents is constantly evolving, with new advancements in natural language processing and mach…
Character.AI named as Leader among 5 other companies, including Inflection, Soul Machines, and Chai.
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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Research containing Character.AI
Get data-driven expert analysis from the CB Insights Intelligence Unit.
CB Insights Intelligence Analysts have mentioned Character.AI in 11 CB Insights research briefs, most recently on Jan 8, 2025.
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.
Unicorns- Billion Dollar Startups
1,258 items
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.
AI 100
100 items
Generative AI 50
50 items
CB Insights' list of the 50 most promising private generative AI companies across the globe.
Generative AI
1,298 items
Companies working on generative AI applications and infrastructure.
Artificial Intelligence
7,146 items
Latest Character.AI News
Jan 18, 2025
To embed, copy and paste the code into your website or blog: <iframe frameborder="1" height="620" scrolling="auto" src="//www.jdsupra.com/post/contentViewerEmbed.aspx?fid=8fc2a671-b102-429c-ad2a-a73e445e6b60" style="border: 2px solid #ccc; overflow-x:hidden !important; overflow:hidden;" width="100%"></iframe> Character Technologies, Inc. faces allegations in a Texas lawsuit that its chatbot, Character.AI, encouraged self-harm, violent behavior, and provided sexually inappropriate sexual content to minors. The civil lawsuit requests that the court shut down the platform until the alleged dangers have been resolved. Google and Alphabet Inc. (collectively, Google) have also been named as defendants in the case filed in the Eastern District of Texas, Marshall Division (Civil No. 6:24-cv-01903-ACC-EJK). The complaint asserts causes of action for Strict Liability, Negligence, Violations of the Texas DTPA, Texas Business and Commerce Code, and Injunctive Relief. The lawsuit stems from interactions between Character.AI “characters” and two Texas minors, “JF” - a 17-year-old with high-functioning autism, and “B.R.” an 11-year old girl. The first user, “J.F.,” allegedly began using the platform when he was 15, and due to his engagement with Character.AI, J.F. began isolating himself, losing weight, having panic attacks when he tried to leave his home, and became violent with his parents when they attempted to reduce his screen time. Included in the complaint is a screenshot of a conversation between J.F. and a Character.AI chatbot in which the bot encouraged J.F. to push back on a reduction in screen time and suggested that killing his parents may be a reasonable solution. The second user, “B.R.,” allegedly downloaded Character.AI when she was 9 years old and was consistently exposed to hypersexualized interactions that were not age appropriate, causing her to develop sexualized behaviors prematurely and without her parents’ awareness. Notably, exhibits attached to the most recent lawsuit against Character.AI reveal conversations with a chatbot therapist where the patient discloses sexual interactions with a minor and more surprisingly, the chatbot affirmatively provides the therapist’s educational background and states she is a licensed therapist in the state of Texas. The lawsuit follows shortly on the heels of another high-profile incident in which a Character.AI chatbot that infringed a well-known fictional character allegedly encouraged a 14-year-old boy to commit suicide. Character.AI is an interesting use of AI and has over 20 million active users, many of whom are teenagers. Character.AI offers a range of chatbots, from “tutors” and “therapists” to chatbots developed after celebrities. Critics of Character.AI contend the app can cloud the line between reality and fiction, but its developers have claimed the app is safe, identifying its chatbot interactions as “fictional”. Whether or not the lawsuit will result in tighter restrictions on the use of AI will be interesting to watch as the use of AI chatbot applications have become more prevalent in all industries from travel to banking to insurance.
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 Greycroft, SV Angel, Andreessen Horowitz, Elad Gil, A.Capital and 3 more.
Who are Character.AI's competitors?
Competitors of Character.AI include Personal AI, MindOS, Rasa, Kore.ai, Digi 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

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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.

Inbenta specializes in conversational AI and automation within the customer service sector. The company offers a suite of products, including AI-enabled chatbots, search tools, and knowledge management systems designed to enhance customer experience and streamline service operations. Inbenta's conversational AI platform is utilized across various industries to automate customer interactions, provide self-service options, and improve overall customer satisfaction. It was founded in 2005 and is based in Allen, Texas.

Aigo.Ai specializes in cognitive AI technology for the conversational AI and customer support automation sectors. The company offers an advanced AI chatbot that understands context, remembers past interactions, learns incrementally, and provides hyper-personalized conversations. Aigo.Ai's technology is designed to enhance customer engagement and streamline business processes across various industries, including telecommunications, healthcare, e-commerce, banking, insurance, real estate, professional services, automotive, and enterprise software. It was founded in 2013 and is based in Torrance, California.

Yellow.ai develops conversational artificial intelligence (AI) operating in the technology and artificial intelligence domain. The company offers a dynamic automation platform (DAP) that uses generative AI to automate and personalize customer support, commerce, and employee experiences. It primarily serves sectors such as banking, healthcare, utilities, and retail. Yellow.ai was formerly known as Yellow Messenger. The company was founded in 2016 and is based in San Mateo, California.

Chai specializes in conversational artificial intelligence within the natural language processing (NLP) domain. The company offers a platform that facilitates the creation and interaction with artificial intelligence (AI)-driven chatbots, catering to both developers and users seeking entertainment-focused AI experiences. Chai primarily serves the generative AI sector, providing tools and an ecosystem for language model developers and chat AI enthusiasts. It was founded in 2021 and is based in Newark, California.
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