CHARACTER.AI EXPLORES SALE OR NEW FUNDING AMID RISING COSTS

Summary from the TLDR Founders newsletter

Character.AI has been holding discussions with potential buyers, banks, and staff over the past few weeks about raising a few hundred million dollars at a valuation of more than $1 billion. The startup's founders left the company last September to join Google, leaving employees to take over ownership. If sold, the buyer would get Character.AI's app and website, which hosts chatbots that resemble anime characters, celebrities, and historical figures. Character.AI makes most of its revenue by charging for premium features with its chatbots. It expects to reach $50 million in annualized revenue by the end of the year.