Kaon AI, a start-up focused on building personalized story worlds powered by generative AI through its products FlowGPT and Emochi, has raised $60 million in its most recent funding round at a valuation in the several hundreds of millions, with investors including B Capital, Redpoint Ace, Goodwater Capital and DCM. The Berkeley, California-based company, led by CEO Jay Dang, chief technology officer Alex Xi and chief operating officer Lifan Wang, aims to create interactive experiences where users generate stories around their "intent, emotion and creative direction." Emochi, Kaon AI's flagship consumer product, generates $45 million in annual recurring revenue, with more than 2 million daily active users who spend an average of 150 minutes on the platform per day. The U.S. is the company's largest market, with the median user age range between 23 and 25 years old. Wang said Kaon is building a "customization engine for AI-native entertainment," distinguishing itself from competitors like Character.ai by focusing on a personalized story engine rather than simulating individuals.