Google is reportedly in discussions to invest hundreds of millions of dollars in Character.AI, a fast-growing AI chatbot startup founded by former Google employees Noam Shazeer and Daniel De Freitas. The potential investment, possibly structured as convertible notes, would deepen the existing partnership between Character.AI and Google, where the startup utilizes Google's cloud services &Tensor Processing Units (TPUs) for model training. Character.AI allows users to interact with virtual versions of celebrities and anime characters. The company, targeting users aged 18 to 24, positions itself as a provider of entertaining personal AI companions. Character.AI is also in talks to raise equity funding, with a potential valuation exceeding $5 billion, following a $150 million funding round in March. This move aligns with Google's trend of investing in AI startups, part of a broader industry pattern where big tech companies seek collaborations with AI firms for cloud and hardware services.