Founder stories
AI chatbot platform where users create and chat with AI-powered characters β real or fictional β in open-ended conversations.
How Noam acquired customers
Tools used to build Character.ai
Noam Shazeer co-authored "Attention Is All You Need" β the paper that created modern AI. When Google refused to release their chatbot technology, he left to build Character.ai, reaching $1B valuation in 16 months.
Noam Shazeer spent nearly two decades at Google, where he became one of the most influential AI researchers in the world. In 2017, he co-authored the "Attention Is All You Need" paper that introduced the transformer architecture β the foundation of virtually every major AI system today including ChatGPT and Google's own models.
Together with colleague Daniel de Freitas, who built Google's experimental chatbots Meena and LaMDA, Shazeer grew frustrated that Google refused to release their conversational AI to the public due to safety concerns. Despite pleas from CEO Sundar Pichai to stay, Shazeer and de Freitas left Google in November 2021 to found Character.AI with the mission of building "personalized superintelligence."
They launched the beta in September 2022, allowing users to create and chat with AI characters β real or fictional β in open-ended conversations. The product exploded: within two months, site visits grew four-fold to nearly 100 million monthly. Users sent 1 billion messages in the first 4 months, and another billion in just the next month. No marketing, no ad spend β pure product virality.
By March 2023, just 16 months after founding, Character.AI closed a $150M Series A at a $1 billion valuation from a16z. Then in August 2024, in a dramatic twist, both Shazeer and de Freitas returned to Google (DeepMind) as part of a $2.7 billion licensing deal, while Character.AI continued operating independently.
Build in a space where you have deep, world-class technical expertise β Shazeer literally invented the architecture behind modern AI chatbots
If your employer won't ship the product, sometimes the best move is to go build it yourself
Product virality can replace marketing budgets β 1 billion messages in 4 months with zero ad spend
Timing matters enormously β launching just before the AI boom positioned them perfectly
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Noam achieved 3 milestones on the path to $10K MRR
The journey, decisions, and context behind this milestone
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