Google has reportedly purchased AI avatar start-up Alter for $100 million.

Alter is an open source, cross-platform software development kit (SDK) which incudes a real-time 3D avatar system and motion capture built for web3 interoperability and the open metaverse.

Alter can be integrated into apps, games and websites.

A source close to the matter told TechCrunch that the move is part of the tech giant’s plan to compete with TikTok.

The video-sharing platform enables users to customise avatars which mimic their movements when recording videos.

The source said said that the buyout was completed around two months ago, with neither company going public with the news.

The move comes after Google's parent company Alphabet saw profits drop by nearly 30 per cent to $13.9 billion, as advertising revenue from YouTube declined.

Commenting on the news Sundar Pichai chief executive of Alphabet and Google, said: “We’re sharpening our focus on a clear set of product and business priorities.”

He added: “Product announcements we’ve made in just the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetise YouTube Shorts. We are focused on both investing responsibly for the long term and being responsive to the economic environment.”

National Technology News has approached Google for comment.

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