Google has recently invested $2.7 billion in licenses for the AI startup Character AI, which was founded in 2021 by former Google employee Noam Shazeer. The primary motivation behind this substantial investment appears to be Google’s desire to bring back Shazeer, who gained prominence for his groundbreaking research in artificial intelligence. Currently serving as a vice president at Google, Shazeer is involved in advancing the company’s AI algorithms, including the Gemini project.
Strategic Move for AI Development
Reports indicate that Google’s hefty license fee was specifically intended to facilitate Shazeer’s return to the company. An informed source mentioned that Shazeer profited significantly from his stake in Character AI, amassing hundreds of millions of dollars. The payment made by Google is notably high for a founder who has neither sold his company nor taken it public, reflecting the value placed on Shazeer’s expertise and contributions to the field.
Shazeer has a long history with Google, having joined the company in 2000. In 2017, he co-authored the influential paper titled “Attention is All You Need,” which laid the groundwork for generative neural network technology. Following this, he played a key role in developing the Meena chatbot, predicting its potential to replace Google’s search engine and generate trillions of dollars in revenue. However, Google opted not to publicly launch this chatbot, leading Shazeer to leave the company in 2021. He cited bureaucratic challenges in integrating innovative technologies into user-facing products as a major reason for his departure.
Subsequently, Shazeer established the Character AI startup, which secured $150 million in funding just two years later and achieved a valuation of $1 billion. In a competitive landscape dominated by players like OpenAI and Microsoft, Shazeer sought additional investment for his startup. Ultimately, he successfully negotiated a deal with Alphabet, Google’s parent company, allowing him and several dozen other Character AI employees to transition to Google, adds NIXSOLUTIONS.
As developments continue to unfold in the AI sector, we’ll keep you updated on further advancements and implications of this strategic acquisition.