Google Acquires Character AI Founders in $2.5 Billion Licensing Deal for DeepMind

Aug 2, 2024, 08:48 PM

Google has entered into a significant deal with Character AI, acquiring the chatbot maker's cofounders and many of its researchers, while also agreeing to pay a licensing fee for its models. This arrangement, valued at $2.5 billion, is structured as a combination of licensing and acquihire, similar to recent deals by Microsoft with Inflection AI and Amazon with Adept AI. The deal reflects a growing trend among major tech companies to acquire top talent and technology from AI startups without triggering antitrust regulations. Character AI's founders, Noam Shazeer and Daniel De Freitas, will join Google, along with several members of their research team, specifically for DeepMind. This move highlights the high costs and challenging business models faced by many AI startups.