In a significant development in the tech industry, the U.S. Justice Department is scrutinizing Google’s recent dealings with Character.AI, an artificial intelligence startup. The investigation centers on whether Google’s agreement to use Character.AI’s technology constitutes a violation of antitrust laws, with concerns that the deal might have been structured to sidestep formal government merger scrutiny.
According to reports from Bloomberg Law, the DOJ has recently signaled its interest in examining the nature of the deal, which was struck last year. As part of the agreement, Google obtained a non-exclusive license to Character.AI’s large language model technology. The company also appointed two of Character.AI’s co-founders, Noam Shazeer and Daniel De Freitas, both former Google employees, to its team.
A Google spokesperson stated, ‘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.’ Neither Character.AI nor the DOJ had immediately responded to requests for comment.
Experts believe the investigation could consider whether such alliances foster anti-competitive practices, regardless of whether a formal merger review was initiated. The probe is currently in its early stages, and there is no indication yet that it will lead to enforcement action.
This development underscores the growing regulatory scrutiny facing major technology firms as they navigate the rapidly evolving field of artificial intelligence. Google’s AI initiatives continue to be at the forefront of innovation, but now face increased oversight from regulatory authorities committed to maintaining competitive markets.
For further updates on this story and the ongoing regulatory landscape in the tech industry, stay tuned.
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