Character AI, a platform that lets users interact with AI-powered characters, is testing games on its desktop and mobile web apps to enhance user engagement.

The games are available to paid subscribers and a select group of free-plan users. For this initial rollout, Character AI has introduced two games: Speakeasy and War of Words.

To access the games, users can select any character they are chatting with and click the new controller icon. The app prompts users to start a separate chat for the game to preserve their ongoing conversations with the character.

In Speakeasy, players aim to get the chatbot to say a specific word without using five restricted words. For example, they might try to make the bot say “croissant” without mentioning “pastry,” “butter,” “bake,” “French,” or “flaky.”

In War of Words, users engage in a verbal duel with the character. An AI referee evaluates each round, with the competition spanning five rounds.

The company sees these games as a way to make the platform more entertaining. “Our goal as an AI entertainment company is to enhance the Character AI experience by making it more fun and immersive. This feature allows users to play games with their favorite characters while preserving the experience they enjoy,” a spokesperson said.

Users have already created their own text-based games, such as the Space Adventure Game. However, Character AI aims to expand its offerings by developing in-house games.

The company has recently undergone leadership changes. Co-founders Noam Shazeer and Daniel De Freitas departed for Google, while a former YouTube executive joined as Chief Product Officer. Dominic Perella, previously the company’s General Counsel, is now serving as interim CEO.

In an interview with TechCrunch in December, Perella emphasized that Character AI is focused on building a platform for entertainment rather than creating AI companions. “We want to create a wholesome entertainment platform where people can craft and share stories. To achieve this, we are continuously evolving our safety practices to the highest standards,” he explained.

The introduction of games aligns with strategies employed by platforms like YouTube, LinkedIn, and Netflix to boost user engagement. According to Sensor Tower, Character AI users already spend an average of 98 minutes per day on the app, and the addition of games could further increase this figure.

Last year, Character AI implemented new safety measures for teens, including clearer labels indicating that AI characters are not real people and a time-out notification for users who spend over 60 consecutive minutes on the app. These changes followed multiple lawsuits involving the company.

With the introduction of games, Character AI is taking another step toward cementing its position as a leading AI-driven entertainment platform.

Hyzon Motors, a hydrogen fuel cell developer, has shut down after struggling to sustain operations since going public during the 2020-2021 SPAC boom. Despite positive press, warning signs persisted, culminating in the company’s downfall.

A Rocky Start and SEC Troubles

Hyzon, a spinoff from Singapore’s Horizon Fuel Cell Technologies, raised $550 million in 2021 through a reverse merger with Decarbonization Plus Acquisition Corp. However, its operations were focused on Europe, Australia, and China, with no U.S. or North American business initially.

In 2021, short-seller Blue Orca Capital accused Hyzon of fabricating orders in China, leading to an SEC investigation. The company paid a $25 million fine, and CEO Craig Knight was replaced in 2022 by Parker Meeks, a former McKinsey & Co. partner.

Attempts to Revive the Business

Under Meeks, Hyzon closed its European and Australian operations and focused on specific markets like refuse trucks. The company also partnered with Fontaine Modification to retrofit Freightliner Cascadia trucks with 110-kilowatt fuel cell systems while developing a larger 200-kW system.

Despite technological progress, Hyzon struggled to generate sales. By the third quarter of 2023, it had only $100,000 in revenue. With just $14 million in cash, the board decided on December 19 to pay creditors and shut down operations. Remaining employees in Michigan and Illinois are set to lose their jobs by February 2024.

Optimism Faded

Until its third-quarter earnings call, Meeks expressed hope, citing potential fleet contracts and falling hydrogen prices, which were projected to drop to $10-$12 per kilogram by 2025. However, Hyzon’s high truck costs and inability to secure large orders sealed its fate.

Broader Industry Struggles

Hyzon’s collapse is part of a broader trend among hydrogen fuel cell and SPAC-funded startups. German company Quantron AG entered insolvency in late 2023, while Nikola Corporation faces funding challenges. Other SPAC-backed ventures like Lordstown Motors and Embark Trucks also failed due to financial difficulties.

Hyliion, however, has managed to thrive by pivoting to a fuel-agnostic stationary generator business, securing contracts, and achieving a significant stock price increase in 2023.

Microsoft is expanding its flagship AI product, Microsoft 365 Copilot, by integrating both internal and third-party AI models to diversify beyond its reliance on OpenAI’s technology and reduce operational costs, according to sources familiar with the matter.

This marks a shift for Microsoft, a major investor in OpenAI, which previously highlighted its exclusive access to OpenAI’s models as a key advantage. When Microsoft introduced 365 Copilot in March 2023, its use of OpenAI’s GPT-4 model was a primary selling point.

The company now seeks to reduce its dependence on OpenAI due to concerns about cost and performance for enterprise users, the sources said. A Microsoft spokesperson confirmed that OpenAI remains a key partner for advanced AI models, but Microsoft also customizes OpenAI’s models as part of their agreement.

“We incorporate various models from OpenAI and Microsoft depending on the product and experience,” Microsoft stated. OpenAI declined to comment.

Microsoft is training its own smaller models, including the latest Phi-4, and customizing open-weight models to make 365 Copilot faster and more cost-effective. These efforts aim to lower operational expenses and potentially reduce costs for customers, sources said.

Microsoft’s leadership, including CEO Satya Nadella, is closely monitoring these developments.

This strategy aligns with changes in other Microsoft units, such as GitHub, which added models from Anthropic and Google in October alongside OpenAI’s GPT-4. Similarly, its consumer chatbot Copilot now integrates both in-house and OpenAI models.

Microsoft 365 Copilot, an AI assistant for enterprise applications like Word and PowerPoint, is still proving its value to businesses. While adoption among Fortune 500 companies has reached 70%, many enterprises remain in the pilot phase, according to Gartner. Pricing and utility have been cited as potential hurdles.

Despite these challenges, adoption is accelerating. Analysts at BNP Paribas Exane predict that Microsoft will sell 365 Copilot to over 10 million paid users this year. In a November blog post, Microsoft highlighted its growing traction within large enterprises.