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Google Hires Character AI Cofounders, Licenses Technology with 2.5x Return

Aug 2, 2024, 06:52 PM

Google has hired the cofounders of Character AI, including Noam Shazeer, and licensed its technology in a deal that mirrors similar moves by Microsoft and Amazon. This agreement, described as a 'pseudo-acquihire,' allows Google to integrate Character AI's technology and talent without a full acquisition. Character AI's investors are set to receive a 2.5x return. The cofounders and several team members will rejoin Google, enhancing its AI capabilities and joining the DeepMind team. This trend of large tech companies acquiring AI talent through licensing deals is becoming more common as regulatory pressures and high processing costs impact the startup landscape. Google aims to test and improve its Grok models with this acquisition.