Musk's xAI is in talks to acquire the artificial intelligence startup Character.AI

ChainCatcher news, citing sources familiar with the matter from Bloomberg, reports that Elon Musk's artificial intelligence startup xAI has discussed acquiring the AI chatbot startup Character.AI. One source indicated that xAI has engaged in discussions with the startup regarding a deal, but it is unclear whether negotiations have progressed.

It is reported that Character.AI held financing talks last year, with a valuation exceeding $5 billion. Meanwhile, xAI completed a $6 billion funding round in May of this year, reaching a valuation of $24 billion. Character.AI was founded in 2021 by former Google employees Noam Shazeer and Daniel De Freitas.