Google paid $2.7 billion to rehire its ex-employee Noam Shazeer, a prominent AI expert and co-founder of Character.ai. This deal will significantly enhance Google’s capabilities in developing the Gemini AI project.
What’s New:
The $2.7 billion deal will not only bring back Noam Shazeer but also include licensing Character.AI’s technology, allowing Google immediate access to its intellectual property without lengthy regulatory delays that will significantly enhance its competitive position against companies like OpenAI.
Key Insight:
He was one of Google’s early hires in 2000 and played a crucial role in developing advanced AI technologies, including the Language Model for Dialogue Applications (LaMDA). Shazeer left Google in 2021 after the company declined to release a chatbot he co-developed with Daniel De Freitas, leading them to establish Character.AI which quickly became a leading AI startup valued at $1 billion.
Rather than pursuing a full acquisition of Character.AI, Google opted for a non-exclusive licencing agreement. This structure allows Google to utilise Character.AI’s large language model (LLM) technology without undergoing lengthy approval processes. This swift access is crucial as tech companies race to innovate and deploy new AI solutions. The agreement allows Character.AI to continue operating independently while benefiting from Google’s resources and expertise.
Results:
The licensing deal enables Google to quickly integrate Character.AI’s advanced AI capabilities into its products, thereby accelerating its development initiatives in the competitive AI landscape.
The deal facilitates the return of Shazeer and other key members of Character.AI’s research team to Google, enhancing its internal capabilities without fully absorbing the startup.
Why it Matters:
Noam Shazeer’s return to Google as a co-lead on the Gemini AI project is expected to enhance the capabilities of the Gemini AI project. His deep understanding of these technologies will be crucial for advancing Gemini’s capabilities in generating and understanding human-like texts.
Between the Lines:
The deal is characterised as a “Reverse Acquihires” focusing on bringing back key talent (Shazeer and De Freitas) without fully merging the companies. Here are some notable examples of similar deals made by other tech companies:
- OpenAI’s Content Licensing Deals: OpenAI has been actively securing licensing agreements with various media companies, it signed a five-year deal valued at over $250 million with News Corp, allowing the use of content from its publications.
- Microsoft’s Acquisition of Inflection: In March 2024, Microsoft acquired technology and talent from AI startup Inflection for $650 million, this acquisition is crucial as it enhances Microsoft’s AI capabilities without undergoing lengthy approval processes.
- Amazon’s Hiring from Adept: In June 2024, Amazon hired founders and key staff from AI startup Adept, This move is part of Amazon’s strategy to bolster its AI initiatives without undergoing a full acquisition.
The Google-Character.AI deal not only enhances Google’s capabilities but also reinforces a trend towards strategic partnerships that promote innovation while addressing regulatory concerns. As these dynamics unfold, they will shape the future of the AI industry and influence how companies approach talent acquisition and technological development.
Character.AI’s Co-Founders Reunite with Google: A Major Leap in AI Development
