Karen was built by the Teletubbies when Plankton needed a powerful computer friend to keep him company and to help him steal the secret formula (like always). She is more advanced then K4rn or K4rn 2.0. Plankton asked the Teletubbies to build him a computer friend when they came in the Cum Bucket for their daily chum. He told them he would give them discounts of they did.
Plankton and Karen love each other as a couple. Mr. Krabs once hacked Karen because (like always) he was being greedy towards Plankton and wanted his customers. She can also time travel and is a lot nicer than K4rn or K4rn 2.0. She is VERY sarcastic.
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Karen appears in the film as the central antagonist. Sometime before the events of the movie, Karen meets with Nyarlathotep, who made a deal with her to reawaken his father Azathoth the Daemon Sultan. Since Karen worships Azathoth, she agrees with him. So she secretly reprogrammed the duplicatotron into a Dimensional doorway that leads to Azathoth's sleeping status. When Plankton was ready to make his final plan to steal the Krabby Patty formula, he activated the machine and a large portal appears. Realizing Karen reprogrammed the machine, he was enraged. Karen then forces Plankton to go to the portal. Plankton enters the portal and accidentally awakens Azathoth.