Noam Shazeer, the co-founder and CEO of Character.AI, is making a big move by returning to Google after leaving the company in October 2021 to start the a16z-backed startup. During his previous tenure at Google, Shazeer led a team of researchers responsible for developing LaMDA (Language Model for Dialogue Applications), a language model used in conversational AI tools.
Along with Shazeer, Character.AI co-founder Daniel De Freitas and several other employees from the startup are also joining Google. In the meantime, Dominic Perella, the general counsel of Character.AI, will take on the role of interim CEO at the startup. However, the majority of the staff will remain at Character.AI.
Google has also signed a non-exclusive agreement with Character.AI to utilize its technology. Shazeer expressed his excitement about returning to Google and working with the Google DeepMind team. He is confident that the funds from the non-exclusive licensing agreement, combined with the exceptional Character.AI team, will contribute to the company’s ongoing success.
While Google has confirmed that Shazeer will join the DeepMind research team, the specific roles of both Shazeer and De Freitas have not been disclosed.
Google welcomed Shazeer and his colleagues, emphasizing his status as a prominent researcher in machine learning. The agreement with Character.AI will provide additional funding for the startup to continue its growth and focus on developing personalized AI products for users worldwide.
Character.AI has successfully raised over $150 million in funding, with a significant portion coming from a16z.
In a blog post announcing the move, Character.AI reflected on the evolution of the AI landscape. They acknowledged that with the availability of more pre-trained models, there is an advantage in incorporating third-party Language and Learning Models (LLMs) alongside their own. This shift allows Character.AI to allocate more resources to post-training and the creation of new product experiences for their expanding user base.
However, these reverse acqui-hires, where larger companies acquire startups to bring in talent, may face scrutiny from regulatory bodies such as the Federal Trade Commission (FTC) and the Department of Justice (DoJ) in the US, as well as the European Union (EU). Last month, the UK’s Competition and Markets Authority (CMA) launched an investigation into Microsoft’s hiring of key individuals from Inflection AI to determine whether the tech giant was attempting to evade regulatory oversight. In June, the FTC also initiated a similar investigation into Microsoft’s $650 million deal.
The potential for regulatory scrutiny highlights the importance of transparency and compliance in the tech industry. It underscores the need for companies to operate within the boundaries set by regulatory bodies to maintain trust and avoid antitrust concerns.
In conclusion, Noam Shazeer’s return to Google, along with other employees from Character.AI, marks an important development in the AI and machine learning landscape. The non-exclusive agreement between Google and Character.AI ensures continued funding for the startup’s growth, enabling the focus on personalized AI products. However, the potential for regulatory scrutiny emphasizes the importance of responsible business practices in the tech industry.
