Google has reached an agreement with Character.AI, granting the tech giant a non-exclusive license to the startup’s advanced chatbot technology. The deal also marks the return of Character.AI co-founders Noam Shazeer and Daniel De Freitas to Google.
Key Details:
Deal Overview:
- Licensing Agreement: Google has secured a non-exclusive license to Character.AI’s large language model technology.
- Talent Acquisition: Noam Shazeer and Daniel De Freitas, along with other Character.AI team members, are rejoining Google’s DeepMind research team.
- Interim Leadership: Dominic Perella, Character.AI’s general counsel, has been appointed as the interim CEO of the startup.
Regulatory Scrutiny:
- Industry Trends: This move follows similar high-profile deals made by Microsoft and Amazon in recent months, reflecting increased regulatory scrutiny in the U.S. and Europe over AI acquisitions and partnerships.
- Past Deals: Microsoft paid $650 million for Inflection’s co-founders and staff in March, and Amazon hired staff from Adept in June. Both deals have been under regulatory review.
Funding and Investment:
- Funding Details: Character.AI will receive additional funding from Google, though the exact amount has not been disclosed.
- Previous Funding: The startup previously raised $193 million from investors including Andreessen Horowitz. Reports indicated it was negotiating for hundreds of millions from Google last year.
Legal Advice:
- Advisors: Sullivan & Cromwell advised Character.AI on the transaction.
