Happy Friday! Today’s show is a special one as we had some big news during our recording. Another heavily funded AI company is getting acquired by big tech. This time it is Character.ai and their founders heading back to Google. For more: Top 10 Black-Led VC Funds Guide | My premium subscription to investor lists, course access | Youtube

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1. Google Snaps Up Character AI: A Win for Big Tech

Google's making moves in the AI space, and their latest play involves Character AI, the chatbot maker that's been turning heads. Here's the scoop:

* Google's paying a licensing fee for Character AI's tech

* They're bringing the co-founders back into the Google fold

* Many of Character AI's researchers are joining Google too

The deal values Character AI at 2.5x its Series A valuation from 2023. But here's the million-dollar question: Is this a win for VCs, or just another big tech acqui-hire?

The Information

Techcrunch

2. Eric Schmidt's $140M Startup Drama

Ex-Google CEO Eric Schmidt is no stranger to headlines, but his latest venture is raising eyebrows for all the wrong reasons. Here's the tea:

* Schmidt invested $140M in a startup incubator led by Michelle Ritter

* The venture is now crumbling amidst personal and professional drama

* It's a cautionary tale about mixing business with pleasure in Silicon Valley

This story is a stark reminder that in the startup world, it's not just about your product – it's about who you know and how you navigate complex relationships.

The Information

3. Amazon's AI Power Play with Adept

Not to be outdone by Google, Amazon's making moves too. They've scooped up Adept AI in a deal that mirrors the Character AI acquisition. It's becoming clear: the AI talent war is heating up, and big tech is pulling out all the stops.

The Verge

What's Next?

I'm thrilled to announce our upcoming Venture Capital Bootcamp! If you're a founder looking to navigate the complex world of VC funding, this is for you. We'll cover everything from crafting killer pitches to understanding term sheets.

Sign up for the Raising Venture Capital Immersive waitlist

Also, check out these free resources:

* VCs for Kamala: A curated list of active VCs supporting diverse founders

* Cold Email Ebook: Master the art of outreach for capital raising

That's all for this week, insiders. Have a great weekend.

Cheers,

Matt Parker

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