The round was led by Andreessen Horowitz (a16z) with participation from previous investors, including Nat Friedman (former GitHub CEO), Elad Gil, SV Angel and A Capital. Andreessen Horowitz General Partner Sarah Wang will join Character.AI's board of directors.

Founded in 2021 by artificial intelligence researchers and former Google engineers Noam Shazeer and Daniel De Freitas, Character.AI is a conversational artificial intelligence platform that uses large language models, deep learning algorithms that can recognize, summarize, translate, predict, and generate text and other content, to provide individuals with a personalized artificial intelligence experience. The platform lets anyone create and engage with Characters, allowing users to build their own, personalized use cases and share them with others.