Google’s $2.7 Billion Move: Rehiring AI Expert and Licensing New Tech

Google

Google is making headlines by investing $2.7 billion to bring back AI pioneer Noam Shazeer and license Character.AI’s technology—this move could change the AI landscape.

At a Glance

  • Google has reappointed Noam Shazeer, a key AI figure known for developing LaMDA.
  • Shazeer left Google in 2021 to co-found Character.AI.
  • Google invested around $2.7 billion to license Character.AI’s technology.
  • Several key personnel from Character.AI will assume leadership roles at DeepMind.
  • This is part of a broader collaboration between Google and Character.AI.

Google Rehires AI Pioneer

Google announced a monumental $2.7 billion investment to rehire Noam Shazeer, a leading AI expert who co-founded Character.AI after departing from Google in 2021. This tremendous sum not only secures Shazeer’s return but also licenses Character.AI’s cutting-edge technology. Shazeer’s work on Google’s LaMDA project initially propelled him to prominence in the technology community.

Shazeer left Google partly due to the company’s decision to delay the release of the chatbot Meena over privacy and security concerns. His exit and subsequent success with Character.AI, which amassed over 20 million monthly active users, showcased his significant expertise in the AI domain. This merger marks a strategic shift for Google as it aims to stave off competition and enhance its AI capabilities.

Key Personnel Transition to DeepMind

In addition to Shazeer, several key personnel from Character.AI are set to join Google’s AI research lab, DeepMind, where they will contribute to ongoing and future projects. Dominic Perella, general counsel at Character.AI, will step in as interim CEO during this transition phase. This broader collaboration aims to integrate Character.AI’s technological advancements with Google’s expansive resources.

The collaboration does not stop at leadership transfers. In what is a non-exclusive agreement, Google and Character.AI will work jointly to drive innovation in AI and bring advanced capabilities to market faster. This move comes against a backdrop of fierce competition from other tech giants such as OpenAI and Microsoft, all vying for top AI talent and technological supremacy.

Economic and Technological Implications

The $2.7 billion investment, which includes acquiring stakes from Character.AI investors and employees, underscores the high stakes of the AI race. This strategy allows Google to bypass exhaustive regulatory hurdles usually associated with such large-scale acquisitions. It also reflects Google’s intent to dominate the AI landscape while maintaining compliance with industry standards and regulations.

Analysts view this investment as a pivotal moment for Google. Laura Martin, an industry analyst, anticipates that Google’s proprietary large language models will drive significant growth over the next three to five years. Despite this optimistic outlook, the industry is also alert to possible regulatory scrutiny arising from such aggressive talent acquisitions and AI development practices.