Character.AI logo
FreemiumBy Character Technologies, Inc.

Character.AI

Character.AI is the #2 AI chatbot platform with 20M+ users. Create and chat with 18M+ characters. Google acqui-hire $2.7B (2024). Free unlimited, c.ai+ $9.99/mo. 2h/day average engagement.

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Description

Character.AI

Overview

Character.AI is the leading AI chatbot personality platform where users can create, share, and interact with AI characters that simulate human conversations. From historical figures and celebrities to fictional characters and original companions.
Founded in September 2022 by Noam Shazeer (co-author of "Attention is All You Need") and Daniel De Freitas, both ex-Google (LaMDA developers). Headquarters in Palo Alto, California.
In August 2024, Google performed a $2.7B "acqui-hire", bringing Shazeer and De Freitas back to DeepMind along with ~30 researchers. Character.AI continues operating independently under interim CEO Dominic Perella.
With 20-28M monthly active users, 223M+ visits/month, 18M+ characters created, and users spending ~2 hours daily on the platform, Character.AI is the second most popular AI chatbot after ChatGPT.

The Google Deal (August 2024)

DetailInformation
TypeAcqui-hire (not full acquisition)
Value~$2.7B
FoundersReturn to Google DeepMind
Employees~30 researchers leave with founders
Interim CEODominic Perella (ex-General Counsel)
LicenseGoogle gets non-exclusive LLM license
Investor payout$88/share (~2.5x previous valuation)
IndependenceCharacter.AI continues as separate company

Main Features

Character Creation

  • Design personalities with detailed descriptions
  • Set tone, knowledge, behavior
  • Greeting prompts to start conversations
  • Up to 3,200 characters of description impact behavior
  • Publish for community or keep private

Character Types

TypeExamples
FictionalHarry Potter, Draco Malfoy, anime characters
CelebritiesAI versions of famous people
HistoricalEinstein, Cleopatra, historical figures
OriginalCompanions, tutors, creatives
UtilityLanguage assistants, coaches, therapists

Chat Features

FeatureDescription
Unlimited conversationsNo message limits
Contextual memoryRemembers previous conversations
Group ChatsMultiple characters + humans
Character CallsVoice calls with characters
ScenesCreate and share AI scenes
StreamsTikTok-style short videos

Social Features (2024-2025)

FeatureDescription
Social FeedShare chat snippets
AvatarFXAnimated videos of characters talking
ImagineImage generation
Community2.5M subreddit members

Pricing (2025)

Free Plan

FeatureIncluded
Unlimited messages
Access to all characters
Create characters
Community interaction
Waiting room at peaks⚠️ May occur

c.ai+ (Premium)

PriceFeatures
$9.99/moMonthly price
$94.99/year~$7.92/mo (20% savings)
c.ai+ FeatureDescription
Priority AccessNo waiting room
Faster responsesLess wait time
Voice CallsVoice calls with characters
Better MemoryImproved conversation memory
Chat StylesAccess to better models
Higher LimitsMore swipes, muted words
No adsInterruption-free experience
Early AccessNew features first
Community ForumExclusive access

Key Metrics (2025)

Users and Engagement

MetricValue
MAU (Monthly Active Users)20-28M
Monthly visits223M+
Average session time17 min 23 sec
Total daily time~2 hours
Pages per visit9.86
Bounce rate33.2%
Mobile traffic74-83%

Content

MetricValue
Characters created18M+
New characters/month9M+
Greeting prompts2.1M+
Page views/month3.14B

Demographics

MetricValue
Age 18-2451.8%
Male gender51.4%
Female gender48.6%
USA traffic24.7-32%

Revenue and Funding

Revenue

YearRevenue
2023$15.2M
2024$32.2M
2025 (projected)$50.1M
2032 (projected)$250M

Funding

RoundDateAmountLead
Series AMar 2023$150MAndreessen Horowitz
Google DealAug 2024~$2.7BGoogle (acqui-hire)

Investors

Andreessen Horowitz (a16z), Nat Friedman, Elad Gil, SV Angel, A Capital

Technology

Proprietary Model

  • Developed in-house until 2024
  • Based on LaMDA-like architecture
  • Trained for stylistic conversations (not factual accuracy)
  • Strong content guardrails

Post-Google Deal

  • Transition to refined open-source models
  • Less proprietary LLM development
  • Focus on product and experience

Safety and Controversies

Safety Measures (2024-2025)

MeasureDescription
NSFW FiltersBlock sexual/violent content
Teen ModelMore restrictive model for minors
Age VerificationBiometric/ID starting Nov 2025
2h/day LimitFor under-18 (Oct 2025)
No minor chatFrom Nov 2025, minors only Feed/Imagine
Koko PartnershipEmotional support resources
ThroughLineHelpline network

Controversies

  • 2024 Lawsuits: Families alleging harm to minors
  • Getty Images: Murdered person bot removed
  • Luigi Mangione: Bots removed after CEO murder
  • Data Breach (Dec 2024): 10 min data exposure
  • Texas AG: Investigation for deceptive marketing to minors

Use Cases

Entertainment

  • Roleplay with fictional characters
  • Interactive fanfiction
  • Collaborative stories

Education

  • Language practice
  • Historical figure simulation
  • Personalized tutoring

Productivity

  • Idea brainstorming
  • Creative writing
  • Personalized assistants

Emotional Support

  • AI companions
  • Support conversations
  • Social practice

Creative

  • Character development
  • Worldbuilding
  • Dialogue writing

PROS ✅

  • Complete Free Tier - Unlimited messages without paying
  • 18M+ Characters - Massive library
  • Exceptional Engagement - 2h/day average
  • Active Community - 2.5M on Reddit
  • Voice Calls - Talk with characters (c.ai+)
  • Group Chats - Multiple characters together
  • Easy Creation - No code required
  • Diversity - Any imaginable character
  • Memory - Remembers conversations
  • Mobile First - 74-83% mobile traffic
  • Not ChatGPT - Focus on personality, not facts

CONS ❌

  • Founders Left - Google acqui-hire
  • Safety Controversies - Lawsuits over minors
  • No NSFW - Strict filters (frustrates some)
  • Factual Accuracy - Not designed for facts
  • Inconsistent Responses - May forget context
  • No API - Not available for developers
  • IP Issues - Celebrity/fiction character issues
  • Open-Source Dependency - Post-deal less innovation
  • Aggressive Moderation - Some content removed
  • Less Innovation - Without technical founders

Why Choose Character.AI?

Choose Character.AI if:
  • You want roleplay with characters
  • You seek conversational entertainment
  • You need AI companion / emotional support
  • You practice languages or social skills
  • You're a writer needing dialogue
  • You want to create your own character
  • You prefer generous free tier
Don't choose Character.AI if:
  • You need factual information (→ ChatGPT)
  • You want API for development
  • You're looking for adult/NSFW content
  • You need serious productive assistant
  • Concerned about privacy with minors

vs Competitors

vsCharacter.AI WinsCompetitor Wins
ChatGPTPersonalities, roleplay, freeFacts, productivity, API
ReplikaMore characters, free, varietyEmotional focus, 3D avatars
Chai AIMore mainstream, larger communityLess NSFW restrictions
NovelAIMore accessible, conversationalBetter for long-form writing
Janitor AISafer, mainstreamNo NSFW restrictions

Company Information

  • Founded: September 2022
  • Headquarters: Palo Alto, California
  • Founders: Noam Shazeer, Daniel De Freitas (now at Google)
  • Current CEO: Dominic Perella (interim)
  • Employees: ~165 (post-Google deal)
  • Peak Valuation: $2.5B (before Google deal)
  • Current Valuation: ~$1B
  • Total Funding: $193M+

Founders (At Google DeepMind)

NamePrevious RoleCurrent Role
Noam ShazeerCEO, Co-founderGoogle DeepMind (Gemini)
Daniel De FreitasPresident, Co-founderGoogle DeepMind
Shazeer is co-author of "Attention is All You Need" (2017), the paper that created the Transformer architecture.

Recognition

  • #2 AI Chatbot most popular (after ChatGPT)
  • Subreddit #1388 by subscribers
  • 3rd Discord largest (before decline)
  • Time on Site highest than ChatGPT (17 min vs 7 min)

Future (2025+)

Announced Plans

  • Multimodal expansion (video, audio, image)
  • Official IP partnerships (character licenses)
  • Possible enterprise licensing via Google
  • Focus on safety and transparency
  • Non-chat features for minors (Feed, Imagine, AvatarFX)

Risks

  • Third-party model dependency
  • Regulatory pressure for minor safety
  • Growing competition in AI companions
  • Without leading technical founders

Key Features

Custom AI character creation

Unlimited chat with characters

Library 18M+ community characters

Group Chats multiple characters

Character Calls voice calls

Contextual conversation memory

Scenes shareable scenes

Streams TikTok-style short videos

AvatarFX animated character videos

Social feed share chats

Imagine image generation

Fictional celebrity historical characters

NSFW safety filters

Teen Model for minors

Community 2.5M Reddit

Mobile first 74-83% traffic

c.ai+ premium priority speed

Early access new features

Interactive roleplay

Conversational language practice

Use Cases

Fictional character roleplay

Interactive fanfiction

Collaborative stories

Language practice conversation

Historical figure simulation

Personalized tutoring education

AI companion emotional support

Brainstorming ideas creativity

Creative writing dialogue

Character development worldbuilding

Conversational entertainment

Social skills practice

Personalized assistants

Interview simulation

Interactive learning

Informal conversational therapy

Gaming narrative roleplay

Fandoms communities

Social content creation

Immersive narrative experiences

Information

Company

Character Technologies, Inc.

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