Google has completed the acquisition of AI avatar startup Alter for $100 million. The platform allows users to create and share their avatars using Artificial Intelligence (AI). With the acquisition of Alter, Google wants to compete with TikTok and boost its content game.
The acquisition was completed about two months ago, but both sides decided to announce it to the public just now. Some of Alter's top executives changed their LinkedIn resumes a few months ago and announced that they had joined Google without giving any idea of Google's acquisition of the company.
The deal was sealed for $100 million, but a Google spokesperson declined to reveal the financial terms.
Google pays $100 million for AI startup Alter
Alter was first known as Facemoji and was intended to bring avatars to gaming and social media platforms. Twitter was one of the first investors in Alter. Alter raised $3 million in seed funding with Play Ventures and Roosh Ventures. Tell someone familiar with the executing order that Google wants to use Alter to improve and thicken its content offerings.
TikTok style videos have become very popular among the users and almost all the known social media platforms are adopting this approach. Instagram rolled out Reels as a TikTok clone, and Google brought shorts to YouTube. Instagram and Snapchat also allow users to create and share their virtual identities. Google now wants to adopt the same strategy with its Alter acquisition.
So far this year, by adding Alter to the portfolio, Google has completed the acquisition of eight startups. In May, the search giant also purchased mini-LED product Raxium to boost AR efforts. Most of the startups that Google buys have artificial intelligence at the heart of their operations. As the senior director of product management at Google Silicon Teams has already pointed out, the future of Pixel phones revolves around artificial intelligence.