AI is shaking up online dating with chatbots that are ‘flirty but not too flirty’
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Not so long ago, drafting a text message to your crush may have involved witty cues from a glossy magazine and the input of everyone in your group chat.
As of Valentine’s Day 2024, the world of online romance looks very different. An increasing number of people are using artificial intelligence to flirt, whether that means generating messages for dating apps, uploading profiles, or evaluating compatibility with a “situationship.”
In the U.S., 1 in 3 men ages 18 to 34 use ChatGPT for relationship advice, compared with 14% of women in the same age range, according to a survey last month on AI platform Pollfish. Startups focused on AI-generated messages for dating are seeing booming demand. A Russian man who programmed a chatbot to converse with more than 5,000 women on Tinder is now engaged to one of them.
The phenomenon even found its way last year into an episode of Comedy Central’s “South Park,” when the character Stan Marsh asked another character, Clyde Donovan, for advice on responding to his girlfriend’s texts.
“ChatGPT, dude,” Clyde told Stan, in the school hallway. “There’s a bunch of apps and programs you can subscribe to that use OpenAI to do all your writing for you. People use them to write poems, write job applications. But what they’re really good for is dealing with chicks.”
Some form of generative AI has entered virtually every industry, from financial services to biomedical research. Nvidia, the leading provider of processors used to power most generative AI models, has seen its revenue soar, and its market cap now rivals that of Amazon. OpenAI has emerged as one of the hottest startups on the planet, thanks to its large language models (LLMs), while Anthropic, founded by former OpenAI employees, is trying to catch up.
Generative AI for dating may sound bleak, but it’s not necessarily surprising. Booming interest in the sector has set the stage for a rush of investments and a mountain of new products and services, including some targeting online romance.
YourMove.AI, an AI dating tool that offers a range of services such as drafting messages, analyzing conversations and evaluating users’ dating app profiles, has about 250,000 users, founder Dmitri Mirakyan estimates. Launched in 2022, YourMove receives about 200,000 site visits per month, he said, and revenue has grown roughly 20% month over month.
“The types of people that use this – you’d think it’s mostly just people that feel awkward, but there’s a ton of people who are just introverts,” Mirakyan told CNBC. He said users include people who are shy, speak English as a second language, are navigating cultural change or are simply newbies to online dating.
A ChatGPT user in New York told CNBC that he decided to use OpenAI’s service to draft messages to women on dating apps after the “South Park” episode last March. He would plug in a woman’s opening message to ChatGPT and prompt it to act like a single person with the goal of getting a date. He made sure to tell the chatbot not to ask the person out immediately.
The man, who asked to remain anonymous for privacy reasons, said that texting is the worst part of dating apps. He said he reached the first-date stage with a couple of people using the ChatGPT method and even turned to the chatbot to plan an outing, asking it for date spots in New York.
‘Dating is hard’
Another New York man, who also requested anonymity, told CNBC that he once asked ChatGPT to help him draft a text to a girl he’d been dating and who was about to go on vacation. He wanted to tell her to have fun and not to worry if she couldn’t respond to his messages while she was away. The first versions sounded too contrived, he said, so he had to prompt the chatbot to draft more casual texts.
“Hey [her name], super stoked for your trip!” ChatGPT returned. “Go have a blast and don’t worry about texting back. But hey, if you snag some cool pics or wanna chat, I’m here. Have fun!”
Rizz, an AI dating assistant, debuted in 2022 after ChatGPT took off. Co-founders Roman Khaves and Josh Miller said they had the idea for a personal dating tool years earlier, but to make it work they would have needed to hire dating coaches because the automation technology didn’t exist.
Now, Rizz has 3.5 million downloads to date, with 1 million monthly active users. On average, the number of users increased 30% per month in the last quarter, the company said.
“Dating is hard,” Khaves told CNBC. “It’s become like a second job for many people – people are struggling. There’s a lot of competition out there. Not only do people need to have great photos that stand out, but they also need to know how to start these conversations on dating apps.”
Some startups in the space are currently using OpenAI’s models and customizing them. The companies that spoke with CNBC said they don’t sell or share training data, although they do use it internally to improve the product. They make money from user subscriptions.
Jonathan Raa | Nurphoto | Getty Images
Alex Weitzman went viral on TikTok and Instagram for Texts From My Ex, the AI chatbot she built to analyze her own text conversations from her past relationship. Then she decided to turn it into a website and app called Amori.
Amori uses AI to analyze a user’s entire WhatsApp or iMessage chat history with any person in their contacts list, Weitzman said. The chatbot, which is built atop OpenAI’s models, uses the chat logs to rank the relationship in areas like compatibility, communication, “sexiness” and more, even going so far as to guess each person’s attachment style. (Weitzman and her ex had a compatibility score of just 37%.)
Between TikTok and Instagram Reels, Weitzman’s video has 3 million views so far. Within two weeks of posting it, 30,000 people signed over access to their message histories, she said, and the tool has now been used by 50,000 people. Weitzman went beyond the web to launch a dedicated app in beta this week. Most of her company’s user base has been women, she said.
“There are some things you don’t want to ask your friend,” Weitzman said, adding, “A friend is not going to be able to read thousands of text messages for you. An AI can be so much more specific and find really specific moments in the chat that show evidence.”
Weitzman plans to offer a range of AI dating coaches, each with their own “personality,” as well as different analysis options for text conversation uploads, such as attachment styles, red flag radar and even an “f—boy detector.”
‘Tread with caution’
At YourMove, Mirakyan now has nine part-time employees working on the app. They’ve spent a long time personalizing the AI model and working through problems – making it “flirty but not too flirty,” he said.
In the beginning, Mirakyan recalled, the model would at times seem too aggressive in trying to ask someone out, or generate a message that tried to address everything mentioned in the person’s dating profile. Sometimes it would even make a joke about the person’s proximity (say, two miles away), which came off as creepy.
Mirakyan said there was a “long cycle of both messing with the AI and the inputs that we provide into the AI, but also thinking about, ‘Who does this message appeal to?'”
Like in other areas, relying too much on AI in dating can cross the line into unethical behavior.
Gary Kremen, who founded Match.com three decades ago, told CNBC that “If someone is always tailoring their responses using a chatbot,” that practice “can easily become problematic.”
For example, adding a chihuahua into a photo to try to match with a user who says they love little dogs can be akin to lying about your age, Kremen said. Although the use of AI for dating purposes isn’t necessarily all bad, he added, dating apps will still need to “tread with caution.”
Lisa Marie Bobby, licensed psychologist and marriage and family therapist, told CNBC that while AI can be helpful for first impressions, especially for those who have struggled with online dating in the past, it can also lead to inauthentic connections.
“Maybe they made decisions about getting involved with you based on an experience that they were having with AI-generated communication, rather than actually you,” Bobby said. “In the short term, it can provide this boost. But in the longer term, did you just waste several months of each of your lives?”
AI-powered dating raises a critical question for people to consider, “When you do begin a relationship with somebody, have you presented a version of yourself that isn’t quite who you are?” Bobby said.
Renate Nyborg, former CEO of Tinder, launched Meeno in 2023 as an AI advice tool for any type of relationship, from romance to workplace and everything in between.
Nyborg said that people use Meeno to generate messages or practice conversations with people in their lives, but the app also allows users to look at big-picture trends across their relationships.
Meeno is mostly targeted at Gen Z and millennials, for now, and the majority of users are men, Nyborg said. It’s currently available in Finland, Australia and New Zealand, but the company plans to expand to the U.S., U.K. and the Netherlands later this year.
Meeno has been working with a set of beta testers in the U.S. since August, Nyborg said, and they’re among the more than 1,000 people working on the app in total. To date, all of Meeno’s output has been reviewed by human annotators with relevant experience, such as hands-on crisis support or psychology training.
Currently Meeno runs on OpenAI’s GPT-4, but Nyborg said the company built custom guardrails to provide specialized relationship advice.
The app isn’t “about giving you a fancy chat-up line,” Nyborg said. “Meeno is helping you build actual close relationships.”
Technology
European tech funding declines for third consecutive year — but the sector is finally stabilizing
On Monday, British tech lobby group Startup Coalition warned in a blog post that there was a risk Reeves’ tax plans could result in a tech “brain drain.”. (Photo by Oli Scarff/Getty Images)
Oli Scarff | Getty Images
Venture capital investment in European technology startups is projected to decline for a third straight year, according to VC firm Atomico — but there are signs that things are finally stabilizing as valuations improve and interest rates fall.
Europe’s venture-backed startups are expected to secure $45 billion of investment by the end of 2024 — slightly lower than the $47 billion they raised last year, Atomico said Tuesday in its “State of European Tech” report.
Still, Atomico said this shows that European tech funding levels have finally “stabilized” despite worsening global macroeconomic conditions leading to three consecutive years of declines.
The firm stressed that the continent’s tech ecosystem is in a much better place than it was a decade ago, with funding this year still set to eclipse the $43 billion startups raised between 2005 and 2014.
In the period spanning 2015 to 2024, European startups have bagged $426 billion, dwarfing the sum of investment deployed into tech firms the decade prior.
Tom Wehmeier, head of insights at Atomico, told CNBC that Europe still has a few key areas of improvement to address before it can produce companies of similar scale to the largest tech firms in the U.S. and China.
“There’s frustrations about the continued challenges faced when it comes to regulation, bureaucracy, access to capital and this idea of scaling across the fragmented European marketplace,” Wehmeier said in an interview.
For example, pension funds in Europe face barriers to investing in venture capital funds and therefore aren’t gaining much exposure to the continent’s fast-growing startup ecosystem, Wehmeier said.
European pension funds allocate just 0.01% of the $9 trillion worth of assets they manage into venture capital funds based in the continent, according to Atomico’s report.
The 2024 publication marks the 10th anniversary since Atomico began compiling its annual report, which is produced in partnership with data firm Dealroom.
Europe’s first $1 trillion tech firm?
According to Atomico there are signs that the sector is improving. In the U.K., for example, Finance Minister Rachel Reeves last week laid out plans to consolidate 86 separate local government pension pots into eight “megafunds” to boost investment in domestic assets.
British tech advocacy group techUK said the reforms “should address barriers to greater availability of pension fund capital and encourage a vision that sees more investment into UK tech science start-ups and scale-ups.”
Reforms to pension schemes are either underway or being discussed in several other countries across Europe.
“These changes could result in billions more being made available to European scale-ups — and that’s something that could be the difference between the best and brightest companies scaling from here in Europe, versus being forced to relocate,” Wehmeier told CNBC.
Atomico said it’s optimistic about the next decade in European tech. The VC firm, which was established by Skype co-founder Niklas Zennström, is predicting the entire European tech ecosystem combined could be valued at $8 trillion by 2034, up from around $3 trillion currently.
Atomico also predicts that Europe will mint its first-ever trillion-dollar tech company in a decade’s time.
While Europe is home to several so-called “decacorns” valued at $10 billion and above, including Arm, Adyen, Spotify and Revolut, it has so far failed to produce a company valued at $1 trillion.
That’s unlike the United States, where several of the so-called “Magnificent Seven” technology companies are now worth over $1 trillion. They include Google parent company Alphabet, Amazon, Apple, Facebook-owner Meta, Microsoft, Nvidia and Tesla.
“If we can unlock capital at scale, keep the brightest minds in Europe, maintain that focus on solving really hard problems for society and the economy, that’s how we go and unlock the first trillion-dollar company,” Wehmeier said.
Hiroki Takeuchi, co-founder and CEO of GoCardless.
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LISBON, Portugal — Financial technology unicorns aren’t in a rush to go public after buy now, pay later firm Klarna filed for a U.S. IPO — but they’re keeping a watchful eye on it for signs of when the market will open up again.
Last week, Klarna made a confidential filing to go public in the U.S., ending months of speculation over where the Swedish digital payments firm would list. Timing of the IPO is still unclear, and Klarna has yet to decide on pricing or the number of shares it’ll issue to the public.
Still, the development drew buzz from fintech circles with market watchers asking if the move marks the start of a resurgence in big fintech IPOs. For now, that doesn’t appear to be the case — however, founders say they’ll be watching the IPO market, eyeing pricing and eventually stock performance.
Hiroki Takeuchi, CEO of online payments startup GoCardless, said last week that it’s not yet time for his company to fire the starting gun on an IPO. He views listing as more of a milestone on a journey than an end goal.
“The markets have been challenging over the last few years,” Takeuchi, whose business GoCardless was last valued at over $2 billion, said in a CNBC-moderated panel at the Web Summit tech conference in Lisbon, Portugal.
“We need to be focused on building a better business,” Takeuchi added, noting that “the rest will follow” if the startup gets that right. GoCardless specializes in recurring payments, transactions that come out of a consumer’s bank account in a routine fashion — such as a monthly donation to charity.
Lucy Liu, co-founder of cross-border payments firm Airwallex, agreed with Takeuchi and said it’s also not the right time for Airwallex to go public. In a separate interview, Liu directed CNBC to what her fellow Airwallex co-founder and CEO Jack Zhang has said previously — that the firm expects to be “IPO-ready” by 2026.
“Every company is different,” Liu said onstage, sat alongside Takeuchi on the same panel. Airwallex is more focused on becoming the best it can be at solving friction in global cross-border payments, she said.
An IPO is a goal in the company’s trajectory — but it’s not the final milestone, according to Liu. “We’re constantly in conversations with our investors shareholders,” she said, adding that will change “when the time is right.”
‘Stars aligning’ for fintech IPOs
One thing’s for sure, though — analysts are much more optimistic about the outlook for fintech IPOs now than they were before.
“We outlined five handles to open the [IPO] window, and I think those stars are aligning in terms of the macro, interest rates, politics, the elections are out the way, volatility,” Navina Rajan, senior research analyst at private market data firm PitchBook, told CNBC.
“It’s definitely in a better place, but at the end of the day, we don’t know what’s going to happen, there’s a new president in the U.S.,” Rajan continued. “It will be interesting to see the timing of the IPO and also the valuation.”
Fintech companies have raised around 6.2 billion euros ($6.6 billion) in venture capital from the beginning of the year through Oct. 30, according to PitchBook data.
Jaidev Janardana, CEO and co-founder of British digital bank Zopa, told CNBC that an IPO is not an immediate priority for his firm.
“To be honest, it’s not the top of mind for me,” Janardana told CNBC. “I think we continue to be lucky to have supportive and long-term shareholders who support future growth as well.”
He implied private markets are currently still the most accommodative place to be able to build a technology business that’s focused on investing in growth.
However, Zopa’s CEO added that he’s seeing signs pointing toward a more favorable IPO market in the next couple of years, with the U.S. likely opening up in 2025.
That should mean that Europe becomes more open to IPOs happening the following year, according to Janardana. He didn’t disclose where Zopa is looking to go public.
Charles Liang, chief executive officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The trade show runs through June 7.
Annabelle Chih | Bloomberg | Getty Images
Embattled server maker Super Micro Computer said on Monday that it’s hired BDO as its new auditor and submitted a plan to Nasdaq detailing its efforts to regain compliance with the exchange. The shares jumped 23% in extended trading.
“This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency,” Super Micro CEO Charles Liang said in a statement.
Super Micro is late in filing its 2024 year-end report with the SEC, and said earlier this month that it was looking for a new accountant after its previous auditor, Ernst & Young, stepped down in October. Ernst & Young was new to the job, having just replaced Deloitte & Touche as Super Micro’s accounting firm in March 2023.
Super Micro said it told Nasdaq that it believes it will be able to file its annual report for the year ended June 30, and quarterly report for the period ended Sept. 30. The company said it will remain listed on the Nasdaq pending the exchange’s “review of the compliance plan.”
Shares of Super Micro soared more than twentyfold over a two year period from early 2022 until their peak in March of this year. But the stock has been hammered on troubling news about its compliance with Nasdaq. Once valued at about $70 billion, the company’s market cap was at $12.6 billion at the close on Monday, following a 16% rally during regular trading.
Super Micro has been one of the primary beneficiaries of the artificial intelligence boom, due to its relationship with Nvidia. Sales last fiscal year more than doubled to $15 billion.
On Monday, Super Micro announced that it was selling products featuring Nvidia’s next-generation AI chip called Blackwell. The company competes with vendors like Dell and Hewlett Packard Enterprise in packaging up Nvidia AI chips for other companies to access.
Super Micro was added to the S&P 500 in March, reflecting its rapidly growing business and then-soaring stock price. Less than two weeks after the index changes were announced, Super Micro reached its closing high of $118.81.
The troubles began within months. In August, Super Micro said it wouldn’t file its annual report with the SEC on time. Noted short seller Hindenburg Research then disclosed a short position in the company, and said in a report that it identified “fresh evidence of accounting manipulation.” The Wall Street Journal later reported that the Department of Justice was at the early stages of a probe into the company.
The month after announcing its report delay, Super Micro said it had received a notification from the Nasdaq, indicating that the delay in the filing of its annual report meant the company wasn’t in compliance with the exchange’s listing rules. Super Micro said the Nasdaq’s rules allowed the company 60 days to file its report or submit a plan to regain compliance. Based on that timeframe, the deadline was Monday.
WATCH: Super Micro is a sell due to accounting irregularities
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