Google’s $2.7 billion deal with AI chatbot startup Character.AI in August sent shockwaves through the tech industry. While the official reason for the agreement was to gain access to Character’s innovative technology, the unofficial reason tells a more intriguing story.
According to a recent Wall Street Journal report, Google’s primary motivation for the deal was to rehire a former employee, Noam Shazeer. Shazeer, a renowned AI expert and one of the early Google employees, created a groundbreaking AI chatbot in 2021 that Google decided not to release to the public. This led Shazeer to leave Google and establish Character.AI, which quickly gained over $150 million in funding and a valuation of $1 billion by March 2023.
The August deal brought Shazeer back to Google as part of the DeepMind research team, where he continues to work on cutting-edge AI technologies. The agreement reportedly made Shazeer hundreds of millions of dollars, showcasing the high stakes and rewards of talent acquisition in the tech industry.
Google’s move to bring Shazeer back mirrors similar strategies by other tech giants like Amazon, who recently signed deals to license AI models from startups like Covariant. These reverse acquihire deals highlight the fierce competition for top AI talent and the importance of staying at the forefront of innovation in the rapidly evolving tech landscape.
As Google and other companies continue to invest in AI research and development, the future of AI technology looks bright and full of exciting possibilities.