Google is under a DOJ antitrust investigation due to hiring founders of Character.AI, drawing regulatory attention to big tech's acquisition of AI talent and technology.
Main Reasons for the Investigation
The investigation was initiated after Google hired the founders of Character.AI to integrate their chatbot technologies. The inquiry examines how the non-exclusive technology licensing affects industry competition.
Google's Response and Deal Information
A Google spokesperson confirmed cooperation with regulators while emphasizing that Character.AI remains independently owned and was not acquired by Google.
> "We're always happy to answer any questions from regulators. We're excited that talent from Character.AI joined the company but we have no ownership stake and they remain a separate company." — *Peter Schottenfels, Spokesperson, Google (Alphabet Inc.)*
Potential Consequences for the Industry
Financially, Google saw a 2.4% stock increase following the announcement, indicating investor confidence. These 'acqui-hire' deals raise concerns about large firms stifling innovation by indirectly acquiring talent rather than through outright purchase. The outcomes of this investigation may influence how tech giants maneuver future talent acquisition deals.
The DOJ investigation into Google underscores the heightened scrutiny on talent acquisition methods in the AI industry and may lead to changes in regulatory guidelines for such deals.
