Google Acquires Character.AI for $2.7 Billion

Google has paid $2.7 billion to rehire AI expert Noam Shazeer, who left the company in 2021 after it declined to release a chatbot he developed with Daniel De Freitas. Shazeer and De Freitas founded Character.AI, an AI startup valued at $1 billion, known for its chatbots that mimic celebrity voices and fictional characters. The deal, which includes a licensing agreement for Character.AI’s technology, allows Google immediate access without waiting for regulatory approval. Shazeer’s return is seen as critical for Google’s AI advancements, particularly for its Gemini project. This move highlights the tech industry's intense competition and substantial investments in AI talent.