The Rise of Character.AI

Hello, everyone! Happy Thursday to all. Welcome to Bite Sized Beta, where we simplify tech in a fun way, much like that cheerful yellow ball in a sing-along movie.

For those of you who might not recall, let’s dive right into today’s topics:

• Character.AI’s meteoric rise
• Quick headlines: 6 tech bites
• This week’s report: Trends among Gen-Z
• Our top three favorite discoveries
• Memes to enjoy over the weekend

FRESHLY BAKED: CHARACTER.AI IS TAKING OFF

As we approach the weekend, here’s a list of things that have worn us out:

• Work
• AI chatbots
• Flakers
• Our stock portfolio
• Vegetables
• Did we mention AI chatbots?

Yes, AI chatbots are everywhere! Bard, Claude, ChatGPT, Snapchat’s My AI, Bing—it's all becoming overwhelming. Yet, there’s a new player making waves…

pulls out phone

Sigh.

We typically refrain from sharing every AI trend, but this one seems like it’s here to stay.

Character.AI has surged in popularity:

• Founded by former Google engineers who developed the initial language model for Google’s conversational AI
• Secured $150 million from a16z, achieving a valuation of $1 billion
• Garnered 1.7 million app downloads within its first week

Incredible, right? So, what exactly is Character.AI?

It’s an application that allows users to converse with AI characters.

Need some therapy? Character.AI is there for you.

Want to engage in a philosophical discussion with Seneca? Character.AI can facilitate that.

Looking for personalized nutrition advice from Andrew Huberman? Absolutely, Character.AI has you covered.

You can even create group chats with multiple characters. Imagine having a discussion with Einstein, Zeus, and Stephen Hawking all at once!

Meta is closely following this trend, developing AI-powered bots modeled after celebrities like MrBeast and Paris Hilton. When Meta starts mimicking your platform, you know you're onto something big.

Notably, the monthly active users of Character.AI’s mobile app are rapidly approaching those of ChatGPT in the U.S.:

Furthermore, they are attracting younger demographics:

This week, they rolled out a subscription plan for $10 a month, which offers quicker message responses, priority access to chats, and entry to an exclusive feedback community.

We’ll be keeping a close watch on Character.AI…

THE BIG PIZOOKIE: WEEKLY REPORT

Tech firms prioritize many things: snacks in their kitchens, nap pods, and days without meetings. But what truly matters? The youth!

Why is this demographic crucial? Their preferences often forecast future trends. If your product isn't resonating with teenagers, it signals potential issues ahead.

This week, the 46th annual Gen Z study was released, surveying 10,000 U.S. teens and their behaviors. Here are some insights:

There you go, folks—the secret to regaining your cool status!

COOKIE CRUMBS: HEADLINES IN BRIEF

• Netflix is launching Netflix House—physical venues combining retail, dining, and live entertainment that feature their movie and show catalog. Watch out, Disney!
• John Legend is entering the tech scene with a social app for tailored food and travel recommendations. They’ve already raised $5 million from Lightspeed and other investors. It’s invite-only, so sign up here.
• X is implementing a $1 annual fee for new users in New Zealand and the Philippines for posting and engaging with content. If successful, expect this model to reach other regions soon.
• Apple is set to release a budget-friendly version of its Vision Pro, but it will still cost between $1,500–$2,500 with fewer features.
• Spotify has unveiled a new merch hub for artists, taking no percentage of sales to appease musicians unhappy with streaming royalties.
• Life expectancy in the U.S. is declining for all adults, with a growing disparity between those with and without a college degree—75 years for non-degree holders versus 83 years for graduates.

CHOCOLATE CHIPS: OUR TOP DISCOVERIES

• 72 books that can transform your life.
• Obama’s advice for the youth.
• The latest trending personality quiz.

SNICKERDOODLES: THURSDAY MEMES

That wraps up our insights for this week! Catch you next Thursday! If you found this enjoyable, please share it with a friend! We believe in spreading the word—no gatekeeping here!

A humorous take on AI interactions, showcasing what happens when characters go rogue.

Discussing the growing frustrations with Character AI and its impact on user experiences.