ChatGPT parent OpenAI faces a blockchain rival as a new NFT project creates 3D avatars from text

• OpenAI, the creator of the language bot ChatGPT and image generator Dall-E, could face competition from Polygon's blockchain AI product, CharacterGPT.

• While Dall-E creates images, CharacterGPT is designed to generate a 3D avatar that can answer questions on the fly.

• Polygon has previously partnered with notable brands including Starbucks, Nike, and Walt Disney.

OpenAI, the creator of the language tool ChatGPT and image generator Dall-E, could be facing some new, three-dimensional competition on the blockchain.

Polygon is working with Alethea AI to launch CharacterGPT, an artificial-intelligence-powered non-fungible token (NFT) project that describes itself as "the world's first multimodal AI system."

In an introductory video, the brand says users will be able to type in text to generate responsive characters with "unique personalities, identities, traits, voices, and bodies." Users can mint the NFTs at mycharacter.ai.

It remains to be seen whether CharacterGPT will gain the popularity of either ChatGPT or OpenAI's bot-powered Dall-E, which attracts 1.5 million users a day.

The CharacterGPT blockchain product looks poised to more directly compete with Dall-E rather than ChatGPT, which generates text responses to typed questions. It has created massive interest through its ability to write convincing articles, cover letters, emails, and messages on dating apps.

Dall-E, for its part, has sparked controversy among artists who allege the platform draws from real-life creators, and can trick people with how realistic its high-quality images appear.

Meanwhile, Alethea AI says CharacterGPT will allow people to create "digital twins," companions, virtual assistants, and parody figures, among other use cases, according to the company's website.

"Generative AI is advancing at a rapid rate and has the potential to profoundly impact our lives in the coming years," Polygon cofounder Sandeep Nailwal said in a statement. "I have seen firsthand how Alethea AI has developed this technology over the last few years and through their CharacterGPT AI engine, users will be able to create interactive characters in a matter of seconds."

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