A Nostalgic Comeback

Remember Tamagotchis, the pocket-sized virtual pets that had millennials glued to tiny screens in the 1990s? Well, they're back... ish.

A California-based startup called My TabAl, Inc. purchased the domain friend.com for $1.8 million to launch its entry into the rapidly burgeoning virtual best friend market. The product, a $99 AI-powered necklace dubbed 'friend' (yes, lowercase), is expected to ship early next year.

Judging by the information and videos that started hitting the net this week, the 'friend' necklace is a ChatGPT wrapper you wear around your neck.

It's always waiting for you to talk to it and listening to your every word, even when you're talking to someone else, so it can shower you with lovely messages and cute responses—written, not spoken. Think of it as a digital shoulder to cry on, without robotic arms to pat your back.

Unsurprisingly, almost everyone writing or tweeting about the device compares its promotional video to the dystopian series Black Mirror.

Investor Enthusiasm

The brainchild of Harvard dropout Avi Schiffmann, 'friend' has charmed investors to the tune of $2.5 million. That's a $50 million valuation for a device that does... well, only a little beyond listening to your conversations and, occasionally, proactively weighing in on what you're saying.

The list of backers reads like a who's who of tech and media: Caffeinated Capital's Raymond Tonsing, Z Fellows founder Cory Levy, Perplexity CEO Aravind Srinivas, Solana founders Anatoly Yakovenko and Raj Gokal, Morning Brew's Austin Rief, and even Google senior product manager Logan Kilpatrick.

According to Schiffmann, the 'friend' necklace is meant to combat loneliness. It connects to your phone via Bluetooth and texts you there when it has something to say.

If you need a pep talk or just some company, you can press the walkie-talkie button on the device and pour your heart out. 'Friend' will then send a text in your phone's companion app.

Privacy Concerns

Here's where it gets unsettling. ' Friend is always listening, and, according to its terms of service and privacy disclosures, it collects any information you give it, like names, billing addresses, email addresses, and phone numbers.

So maybe it's like having an overly attached, stalking friend who works for the CIA? It can also send unprompted messages. Imagine getting a text out of the blue saying, 'Good luck on your interview!' or 'She'll never go for you.' Sweet or creepy? You decide.

Schiffmann didn't immediately respond to a request for comment from Decrypt. However, he insists this isn't meant to replace human interaction or act as a therapist. 'I would really view the product as like an emotional toy,' he told TechCrunch. 'With hardware present, I believe it is a better emotional connection.'

Competition in the Market

The 'friend' necklace isn't alone in the AI wearable space (Rabbit and Humane have already released similar devices), and it's not even the first 'friend.'

Based Hardware has already launched its own Friend AI necklace for $69. That open-source wearable comes with a developer kit, allowing third parties to add functionality—potentially making it more than just a glorified chatbot on a string.

Based's founder is satisfied with the unfriendly competition. In a twist that reads like Silicon Valley fan fiction, the developer dropped a diss track aimed squarely at Schiffmann, going so far as to challenge him to a physical fight. Who knew AI friendship could be so combative?

The AI Companion Industry

For those keeping score at home, this isn't Schiffmann's first rodeo with AI products. Last year, he raised $1.9 million to launch a $600 pendant called Tabs for tracking people and transcribing meetings. That project didn't make it due to 'privacy concerns,' and now pre-order customers can switch to 'friend' or get a refund.

Of course, so much money is being poured into AI companions that a boxing match between two CEOs is not an entirely crazy idea.

In 2022, the worldwide funding of the AI companion industry hit a milestone of $299 million, witnessing excellent growth from just $7 million in the previous year, 2021.

People have more friends than lovers, so you do the math.

If you don't think having a physical device around your neck creates a stronger emotional connection than just another app on your phone, try our just-for-fun AI companion that does the same thing.

Push a button, talk to it, and get a useless but excellent response in text format. We named it fRiEnD-GPT—and it's free. Better yet, get a Tamagotchi.