Startup Character.AI has entered into a non-exclusive license agreement with Alphabet’s Google, allowing the tech giant to utilize Character.AI’s large language model technology. This strategic partnership, similar to recent deals made by Microsoft and Amazon, underscores the competitive drive among tech companies to enhance their AI capabilities by investing in cutting-edge technologies and talent from innovative startups.
As part of the agreement, Character.AI co-founders Noam Shazeer and Daniel De Freitas will return to Google, where they previously worked. Shazeer, a prominent researcher in machine learning, will join Google DeepMind’s research team along with several of his colleagues. This move reflects the ongoing trend of tech giants acquiring top AI talent to maintain a competitive edge in the rapidly evolving AI landscape.
Character.AI will also receive additional funding from Google, although the exact amount has not been disclosed. The startup previously raised $193 million in venture capital from investors such as Andreessen Horowitz. In light of the new deal, Dominic Perella, Character.AI’s general counsel, will take on the role of interim CEO, effective immediately.
A Google spokesperson expressed excitement about the return of Noam Shazeer, highlighting his expertise and contributions to the field of machine learning. The spokesperson noted, “We’re particularly thrilled to welcome back Noam, a preeminent researcher in machine learning, who is joining Google DeepMind’s research team, along with a small number of his colleagues.”
This agreement follows a series of high-profile acquisitions and partnerships in the AI sector. In March, Microsoft invested $650 million to onboard the co-founders and several staff members from AI startup Inflection. Similarly, in June, Amazon hired multiple co-founders and employees from Adept, another AI startup. Inflection and Adept raised $1.3 billion and $415 million, respectively, illustrating the substantial financial commitments being made to secure top AI talent and technology.
Character.AI was reportedly in discussions to raise additional funding from Google, as mentioned in a November report. The new funding secured through this agreement will likely bolster the startup’s resources and further its development initiatives.
The law firm Sullivan & Cromwell provided legal advice to Character.AI on the deal, ensuring that the terms were favorable and aligned with the company’s strategic goals.
This partnership highlights the increasing importance of collaboration between established tech giants and innovative startups in the AI industry. By leveraging Character.AI’s advanced language model technology, Google aims to enhance its AI capabilities and maintain its leadership position in the competitive tech landscape.
READ MORE: