Noam Shazeer and Daniel De Freitas, the founders of the prominent AI startup Character.AI, are rejoining Google alongside other members of Character.AI’s research team. The announcement came on Friday, signaling a new partnership with Google’s AI unit, DeepMind.
Key Details:
Character.AI Background:
- Startup Success: Character.AI, known for its innovative chatbot technology powered by large language models (LLMs), achieved a $1 billion valuation as the AI boom surged last year. Despite its success, the startup had yet to generate revenue but was exploring future subscription options.
- Founders’ Departure: Shazeer and De Freitas left Google in 2021 after their attempts to advance Google’s chatbot efforts were reportedly dismissed. They founded Character.AI shortly thereafter.
New Partnership:
- Return to Google: Shazeer and De Freitas, along with select members of the Character.AI team, are joining Google DeepMind. The move is part of a broader effort by Google to enhance its AI capabilities.
- Licensing Agreement: Character.AI will provide Google with a non-exclusive license for its LLM technology. This agreement is expected to boost Character.AI’s funding, allowing the company to further develop its personalized AI products.
Shifts in AI Landscape:
- Increased Competition: With many pre-trained models now available, Character.AI plans to leverage both its own and third-party LLMs to focus on post-training and creating new product experiences.
- Google’s AI Strategy: The partnership aligns with Google’s strategy to accelerate its AI advancements following criticism for lagging behind OpenAI’s ChatGPT. There were also reports of Google considering a significant investment in Character.AI last year.
Statements and Reactions:
- Shazeer’s Statement: “I am super excited to return to Google and work as part of the Google DeepMind team,” Shazeer said. “I am confident that the funds from the non-exclusive Google licensing agreement together with the incredible Character.AI team positions Character.AI for continued success in the future.”
- Google’s Response: A Google spokesperson expressed enthusiasm about welcoming Shazeer back, highlighting his role as a leading researcher in machine learning.
Industry Context:
- Talent and Regulatory Pressures: The move comes amid heightened competition and regulatory scrutiny in the AI sector. Recently, U.K. regulators began investigating Google’s partnership with AI startup Anthropic, and Microsoft faced similar scrutiny following its acquisition of DeepMind co-founder Mustafa Suleyman and his team.
The partnership marks a significant development in the AI industry, reflecting the competitive and evolving landscape as tech giants and startups continue to vie for leadership in artificial intelligence.
