The chatbot company found millions of people would spend an hour inside a made-up conversation. Then compute costs, a founder homecoming and a safety reckoning turned one clever app into a test of whether AI can become an entertainment medium.
The Los Angeles startup began with animated news, found money in celebrity cartoons, rode the NFT wave, and emerged with a more practical bet: persistent, game-ready AI characters. The lesson is not to predict the next platform perfectly - it is to keep the expensive technical core while replacing the story around it.
Kaon (formerly FlowGPT) is a San Francisco AI-native content lab building consumer AI experiences. After scaling FlowGPT into a 4M+ monthly user prompt marketplace, the team shifted gravity to Emochi - an AI character roleplay app that has climbed into the top tier of consumer AI with millions of monthly users. Founded in 2023 by UC Berkeley dropout Jay Dang and co-founder Lifan Wang, the company raised $10M led by Goodwater Capital and DCM in early 2024 and added a strategic round backed by B Capital and Redpoint in 2025.