In a notable shift within the AI industry, the founders of the burgeoning AI startup Character.AI are making their way back to Google. Noam Shazeer and Daniel De Freitas, alongside key members of their research team, are set to join Google’s AI powerhouse, DeepMind.
Character.AI, recognized for its innovative use of large language models enabling users to create and interact with custom chatbots, achieved a $1 billion valuation amidst last year's AI surge. Despite not generating revenue initially, the startup hinted at potential subscription services on the horizon.
Shazeer and De Freitas originally departed Google in 2021 after their push for a chatbot initiative was reportedly stalled. They then founded Character.AI, with De Freitas openly criticizing Google's slow pace, comparing it unfavorably to their own dynamic venture. "There are some overlaps, but we’re confident Google will never do anything fun," De Freitas remarked to Axios last March, referencing the then-named Bard, now known as the Gemini chatbot.
The recent agreement between Google and Character.AI involves a non-exclusive license for Character.AI’s large language model technology. This deal aims to bolster Character.AI's growth and development of personalized AI products, backed by increased funding from Google. The startup's blog post elaborates on the evolving AI landscape, highlighting the strategic shift towards utilizing a mix of third-party and proprietary models to enhance their offerings.
Alphabet, Google's parent company, has faced pressure to keep pace with AI advancements, especially following the success of OpenAI’s ChatGPT. In response, Google has accelerated its efforts, even considering a substantial investment in Character.AI late last year.
Expressing his enthusiasm about the move, Shazeer stated, "I am super excited to return to Google and work as part of the Google DeepMind team. I am so proud of everything we built at Character.AI over the last 3 years." He emphasized the strategic benefits of the licensing agreement and the promising future it sets for Character.AI.
A Google spokesperson welcomed the return of Shazeer, hailing him as a leading machine learning researcher. This return is not just a testament to the competitive nature of the AI talent market but also underscores the collaborative efforts needed to navigate a complex regulatory environment. Recently, the UK’s competition watchdog announced an investigation into Google’s partnership with AI startup Anthropic, reflecting the scrutiny tech giants face in their AI ventures.
Microsoft’s recent hiring of Mustafa Suleyman, a co-founder of DeepMind, and the subsequent regulatory probe into this acquisition, further illustrates the intense competition and strategic maneuvers shaping the AI industry today.
The return of Character.AI’s founders to Google signals a significant consolidation of talent and technology, poised to drive further innovations within the AI sector.
