Google has invested $2.7 billion to rehire AI expert Noam Shazeer while acquiring Character.AI’s advanced technology—here’s how this blockbuster deal unfolds.
At a Glance
- Google reappointed Noam Shazeer, a notable AI figure known for LaMDA.
- Shazeer returns to Google after co-founding Character.AI in 2021.
- The $2.7 billion deal includes licensing Character.AI’s technology.
- This reassignment is part of a broader collaboration between Google and Character.AI.
- The initiative aims to bolster Google’s position in the rapidly evolving AI sector.
A Strategic Rehire
Google has reappointed Noam Shazeer, a pivotal AI figure, who previously made waves by developing LaMDA. Shazeer left Google in 2021 to co-found Character.AI, a startup focusing on sophisticated chatbot technology. His return underscores Google’s unwavering commitment to securing leading talent in the AI industry.
Shazeer’s rehire comes as part of a $2.7 billion investment. This considerable sum covers not just Shazeer’s rehiring but also the acquisition of licensing rights to Character.AI’s advanced technology. The rehiring marks a development in a broader collaboration between Google and Character.AI, aimed at enhancing Google’s AI capabilities while circumventing potential regulatory issues that fully-fledged acquisitions might encounter.
At a time when tech companies are paying eye-popping sums to hire the best minds in artificial intelligence, Google’s deal to rehire Noam Shazeer has left others in the dust https://t.co/3CkaFP3Dur https://t.co/3CkaFP3Dur
— The Wall Street Journal (@WSJ) September 25, 2024
The Genesis of the Deal
Shazeer’s departure from Google in October 2021 was a notable one. He co-founded Character.AI alongside Daniel De Freitas after Google decided to shelve their innovative chatbot project, Meena, due to safety concerns. Character.AI quickly gained traction, securing over 20 million monthly active users. However, the startup faced challenges in monetizing its services and managing user behavior effectively.
Google’s $2.7 billion investment also includes acquiring stakes from Character.AI’s investors and employees, ensuring a substantial payout for Shazeer. The deal’s structure managed to bypass explicit regulatory approvals typically required for acquisitions, as it is presented as a licensing agreement rather than a direct takeover.
scoop: Noam Shazeer will be a co-tech lead on Gemini, after the $2.7 billion licensing deal that rehired him and other Character researchers earlier this month https://t.co/i8fvVrf98B
— Erin Woo (@erinkwoo) August 22, 2024
Broader Implications for AI Development
The return of Shazeer to Google highlights a broader strategy shift towards collaboration and investment in AI. Shazeer has expressed criticism of Google’s earlier risk-averse stance in AI, branding the company as overly cautious. Now, leading the charge as part of Google’s new AI initiative dubbed ‘Gemini’, Shazeer is poised to make significant strides.
OpenAI and other competitors have ramped up the stakes, offering substantial pay packages to attract top AI talent. Analysts, like Needham’s Laura Martin, foresee formidable growth for Google’s proprietary large language models (LLMs) in the near future. This aggressive move by Google reiterates the intense competition in Silicon Valley’s AI domain.
In conclusion, Google’s $2.7 billion deal to rehire Noam Shazeer and license Character.AI technology marks a significant strategic investment in the future of AI. This bold move sends a clear message about Google’s long-term priorities, reflecting their dedication to maintaining a leading edge in artificial intelligence innovation.
