Sep 25, 2024
In August, Google finalized a massive $2.7 billion deal with the AI chatbot startup Character.AI, ostensibly to acquire a license for using Character’s innovative technology. However, a Wall Street Journal report from Wednesday suggests a deeper motive: Google was keen on bringing back Noam Shazeer, a former employee and AI prodigy who left the company in 2021 after his proposal to launch an AI chatbot was rejected.
Noam Shazeer, who was among the first hundred employees at Google, has been a pivotal figure in AI development. His 2017 co-authored paper, “Attention is All You Need,” introduced a groundbreaking deep learning architecture that has since been cited over 100,000 times, cementing his reputation as a pioneer in modern AI. Shazeer’s LinkedIn profile boldly states, “I have invented much of the current revolution in large language models.”
Back in 2021, prior to the release of OpenAI’s ChatGPT, Shazeer and his team at Google developed a conversational AI chatbot. Despite their efforts to persuade Google to present it publicly, the company declined repeatedly. Frustrated, Shazeer departed to establish Character.AI, which quickly attracted over $150 million in funding and was valued at $1 billion by March.
Google’s acquisition not only reincorporated Character’s technology into its portfolio but also secured Shazeer’s return, this time to the DeepMind research division focusing on AI advancements. The Wall Street Journal reports that Shazeer personally profited by hundreds of millions through the deal.
This move mirrors a broader trend where tech giants strategically acquire startups to reintegrate influential developers. For instance, in late August, Amazon clinched a deal to license AI models from the AI robotics firm Covariant while also integrating its co-founders and select team members.