Character.AI, the chatbot startup whose founders left to join Google in a $2.7 billion deal last year, is exploring options that include a potential sale or raising new funding at a valuation above $1 billion. The company, now led by former Meta and Brex executive Karandeep Anand, has about 20 million monthly users and is projecting $50 million in annualized revenue by year-end, up from $30 million last month. Despite growth, it faces heavy operating costs for running open-source models, legal challenges including lawsuits and a Texas investigation, and the loss of its original founders and technical staff.
