AI Startup Character.AI Raises $150 Million at $1 Billion Valuation Led by a16z

Character.AI, an AI startup founded by two former Google founders, has closed a $150 million round led by a16z with participation from former GitHub CEO Nat Friedman, Elad Gil, A Capital, and SV Angel. 

The new funding will be used to expand its computing power to produce more complex models with advanced reasoning and higher accuracy. The money will help the company expand its 22-person team and add technical abilities.

Character.AI is reportedly pre-revenue is reminiscent of other recently hyped technologies like crypto (or more broadly Web3) and social audio.