Google has reappointed Noam Shazeer, a leading figure in artificial intelligence, renowned for developing the Language Model for Dialogue Applications (LaMDA).
Google’s parent company, Alphabet Inc., reportedly paid billions to secure Shazeer’s return for an ambitious new project. However, this isn’t Shazeer’s first time with the tech giant—he left Google in October 2021 to co-found Character.AI, a chatbot startup that gained significant backing, including from venture capitalist Andreessen Horowitz.
In its effort to re-engage Shazeer, Google is said to have invested approximately $2.7 billion to licence Character.AI’s technology. The acquisition involved purchasing stakes from Character.AI’s investors and employees, leading to a substantial payout for Shazeer, as reported by the Wall Street Journal.
Shazeer’s return to Google is part of a broader collaboration between the tech giant and Character.AI. Both companies have signed a non-exclusive agreement, allowing Google to integrate Character.AI’s technology—a strategic move to enhance its AI capabilities through external partnerships.
Several key members from Character.AI, including general counsel Dominic Perella, who will serve as interim CEO, will also transition to leadership roles at Google’s AI research lab, DeepMind.
Challenges for Character.AI
Despite amassing over 20 million monthly active users, Character.AI has struggled with monetisation and managing user behaviour, highlighting the complexities of the AI industry. These challenges reveal the gap between user engagement and profitability, raising concerns about long-term sustainability.
Shazeer is expected to play a pivotal role in leading Google’s new AI initiative, Gemini, alongside two other leaders. His expertise will be crucial in navigating the challenges and expectations surrounding the project’s development.
Shazeer’s rehiring marks a significant shift in Google’s AI strategy, with a focus on collaboration and investment. While this move could enhance Google’s AI prowess, it also raises questions about the future sustainability of Character.AI and its broader impact on the tech industry.
