Born Secures $15M to Advance Social AI Companions Tackling Loneliness

Lilu Anderson
Photo: Finoracle.net

Born Raises $15 Million to Expand Social AI Companions Addressing Loneliness

Berlin-based AI gaming startup Born has secured $15 million in Series A funding to develop a new generation of social AI companions aimed at alleviating loneliness through shared virtual experiences.

Fabian Kamberi, CEO and co-founder of Born, criticizes current AI companions for fostering isolation by encouraging one-on-one interactions with chatbots. He argues that these models exacerbate loneliness rather than improve users’ lives. Born’s approach centers on creating AI companions that promote social engagement and strengthen real-world human connections.

Pengu: A Collaborative Virtual Pet

Born’s flagship product is the Pengu app, a generative AI-powered platform where users raise and play mini-games with a virtual pet named Pengu. Unlike traditional virtual pets, Pengu requires collaborative care between two users, such as friends or romantic partners, turning the AI character into a shared social project.

The app operates on a freemium model, offering basic access for free and premium features through a Pengu Pass subscription. Since its launch, Pengu has attracted over 15 million users worldwide, though Born has not disclosed the proportion of paying customers, an important metric for subscription-based consumer apps.

Expansion Plans and New Products

With the new funding, Born intends to introduce additional characters to the Pengu app, including AI companions designed to support learning. The company is also establishing a New York office focused on marketing and AI research to enhance its character engine capabilities. This research aims to enable AI companions to develop consistent personalities, remember past interactions, and evolve alongside users.

Additionally, Born is preparing to launch a distinct social AI product targeted at young people aged 16 to 21, although its apps are accessible to users as young as 13. This upcoming product, currently in stealth mode, will feature AI companions that engage users by sharing culturally relevant content such as TikTok and Instagram videos, thereby integrating more deeply with users’ social media habits.

Investor Confidence and Vision for Social AI

Born’s vision to combine entertainment with social interaction in AI companions has garnered investment from notable backers including Accel, Tencent, and Laton Ventures, bringing total funding to $25 million. Accel partner Luca Bocchio praised Born’s ability to deliver popular apps and their ambitious goal of creating a new consumer social category based on emotionally intelligent AI characters.

Kamberi emphasized that Born seeks to move beyond the current chatbot paradigm, aiming to create AI friends that offer more engaging, socially enriching experiences than simple text-based interactions.

FinOracleAI — Market View

Born’s successful Series A funding round and its focus on socially engaging AI companions position the company well within the growing consumer AI market. The collaborative nature of its products differentiates it from traditional one-on-one chatbot models, potentially increasing user retention and viral growth through network effects. Risks include the challenge of converting a large user base into paying subscribers and competition from established social media platforms integrating AI features. Investors and market watchers should monitor user engagement metrics and the reception of Born’s upcoming product aimed at younger demographics.

Impact: positive

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Lilu Anderson is a technology writer and analyst with over 12 years of experience in the tech industry. A graduate of Stanford University with a degree in Computer Science, Lilu specializes in emerging technologies, software development, and cybersecurity. Her work has been published in renowned tech publications such as Wired, TechCrunch, and Ars Technica. Lilu’s articles are known for their detailed research, clear articulation, and insightful analysis, making them valuable to readers seeking reliable and up-to-date information on technology trends. She actively stays abreast of the latest advancements and regularly participates in industry conferences and tech meetups. With a strong reputation for expertise, authoritativeness, and trustworthiness, Lilu Anderson continues to deliver high-quality content that helps readers understand and navigate the fast-paced world of technology.