Google and Character.AI enter AI licensing agreement

The agreement mirrors recent AI talent acquisitions by Microsoft and Amazon, which have raised regulatory concerns in the US and Europe.

Google building

Startup Character.AI has entered into a non-exclusive licensing agreement with Google, allowing the tech giant to use its large language model technology. As part of the deal, Character.AI co-founders Noam Shazeer and Daniel De Freitas, former Google employees, will rejoin Google, specifically its DeepMind research team.

Character.AI will receive additional funding from Google, though the exact amount has not been disclosed. Dominic Perella, the startup’s general counsel, will serve as interim CEO. The agreement follows similar moves by Microsoft and Amazon, who have also acquired AI talent from startups to strengthen their AI capabilities.

The deal comes amid regulatory scrutiny in the US and Europe over how major tech companies consolidate AI resources. Character.AI previously raised $193 million in venture capital and discussed securing more funding from Google.