Remember Tamagotchis? The beloved 90s virtual pets have inspired a new wave of digital companions. A California-based startup, My TabAl, Inc., has acquired the domain friend.com for $1.8 million to launch an AI-powered necklace called 'friend.' This $99 device is set to ship early next year, offering users a modern take on digital companionship.
The 'friend' Necklace: What It Does
The 'friend' necklace functions as a ChatGPT-enabled device that users wear around their necks. It constantly listens and sends written messages to a companion app on your phone, offering comforting and friendly responses. Unlike a physical companion, 'friend' doesn't speak but instead provides a steady stream of encouraging texts.
Investment and Skepticism
Harvard dropout Avi Schiffmann, the creator of 'friend,' has attracted $2.5 million in investment, valuing the company at $50 million. The list of backers includes prominent figures like Caffeinated Capital's Raymond Tonsing and Google’s Logan Kilpatrick. Despite its high valuation, some critics question the value proposition of a device that essentially listens and responds with generic texts.
Privacy Concerns and Market Competition
One of the more unsettling aspects of 'friend' is its constant surveillance. The device collects information such as names and billing addresses, raising privacy concerns. It can also send unsolicited messages, potentially coming off as intrusive. While Schiffmann claims that 'friend' is not meant to replace human interaction, the device's omnipresence might blur those lines.
Rivalries in the AI Wearable Market
The AI wearable space is getting crowded. Competitors like Based Hardware have already launched similar products, such as their own Friend AI necklace, which offers more flexibility through a developer kit. The rivalry has even led to unusual incidents, like Based Hardware's founder challenging Schiffmann to a physical fight.
Previous Ventures and Industry Growth
This isn't Schiffmann's first venture into AI. His previous project, Tabs, aimed to track people and transcribe meetings but faced privacy issues. Now, customers are offered the option to switch to 'friend' or get a refund. The AI companion industry is booming, with funding reaching $299 million in 2022 and projections indicating a market size of $9.5 billion by 2028.
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