Google Signs Licensing Deal with Character.AI, Rehires Co-Founders

Google has signed a non-exclusive licensing agreement with the startup Character.AI, granting the tech giant access to its large language model technology. This agreement echoes similar deals struck by other tech giants like Microsoft and Amazon in recent months.

As part of the deal, Character.AI co-founders Noam Shazeer and Daniel De Freitas, who were former Google employees, will rejoin Google, significantly boosting its AI research capabilities. Shazeer, a renowned researcher in machine learning, will join Google DeepMind’s research team along with a small number of his colleagues.

This development is notable as it reflects the ongoing trend of major tech companies investing heavily in AI infrastructure and talent acquisition. Earlier this year, Microsoft invested $650 million to bring on board the co-founders and staff from AI startup Inflection, while Amazon hired several co-founders and employees from another AI startup, Adept.

Character.AI, which previously raised $193 million in venture capital from investors including Andreessen Horowitz, will receive additional funding from Google as part of this deal. However, the exact amount has not been disclosed. Dominic Perella, Character.AI’s general counsel, has been appointed as the interim CEO effective immediately.

A Google spokesperson expressed excitement over the return of Noam Shazeer and the potential advancements in AI research this collaboration will bring. This deal, while beneficial for both parties, is being closely watched by regulators in the U.S. and Europe due to growing concerns over how AI deals are structured and the potential impact on market competition.