Character.AI, a chatbot startup, has laid off a portion of its staff following a recent partnership with Google. The company is refocusing on building personalized AI products.
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| Character.AI, a chatbot startup, has undergone a strategic shift, leading to layoffs. The company is now focusing on building personalized AI products and has recently partnered with Google. Symbolic image |
San Francisco, California, USA – August 30, 2024:
Chatbot startup Character.AI has undergone a strategic shift, resulting in layoffs of at least 5% of its workforce. The news comes on the heels of a recent partnership with Google.
According to The Information, citing an inside source, the layoffs primarily affected employees in marketing and recruiting. A Character.AI spokesperson confirmed the workforce reduction in a statement to Reuters, emphasizing the company's refocusing on "building personalized AI (artificial intelligence) products." The statement did not specify the number of employees laid off.
Earlier this month, Character.AI announced a non-exclusive licensing agreement with Google, granting the tech giant access to its large language model technology. This partnership also secured additional funding for the startup, although the exact amount remains undisclosed.
Character.AI previously received $193 million in venture capital funding, with Andreessen Horowitz among its investors. Additionally, Reuters reported in November that the company was in talks with Google for a potential investment in the hundreds of millions.
The layoffs suggest a potential change in direction for Character.AI with a focus on personalized AI products, aligning with the Google partnership. However, the exact impact on the company's future trajectory remains to be seen.