Google's $2.7 Billion Gambit: Rehiring AI Pioneer Noam Shazeer

Google Rehired Noam Shazeer With Major Payout, Assigns Leadership In AI Development: Report - Alphabet (NASDAQ:GOOGL)

Shazeer to lead Google's AI efforts, with focus on Gemini project. Alphabet Inc GOOG GOOGL Google has rehired artificial intelligence pioneer Noam Shazeer. Shazeer, known for his work on the Language Model for Dialogue Applications (LaMDA), left Google in October 2021 to launch the chatbot startup Character.AI, which gained backing from Shazeer-founded firm a16z, TechCrunch reported in August. His return is part of a broader collaboration, as Google signed a non-exclusive agreement with Character.AI to leverage its technology. Also Read: Google Antitrust Challenge Puts Billions In Search Revenue At Stake: Analyst Shazeer and several key employees from Character.AI will take on leading roles at DeepMind. Character.AI's general counsel, Dominic Perella, will temporarily step in as interim CEO of Character.AI. To regain Shazeer's talent, Google reportedly paid around $2.7 billion to license Character.AI's technology and bring Shazeer back to lead its AI efforts. Google acquired stakes from Character investors and employees, with Shazeer receiving a substantial payout, the Wall Street Journal reports. Character.AI, despite boasting over 20 million monthly active users, the startup faced challenges monetizing its services and controlling user behavior. According to reports, Shazeer is now one of three leaders steering Google's development of its latest AI project, Gemini. Needham analyst Laura Martin expects Google's proprietary large language models (LLMs) to drive significant upside over the next 3-5 years. The analyst hailed Google and Amazon.Com Inc AMZN as the most likely beneficiaries of the current arms race to build GenAI tools and capabilities. GOOGL stock has risen 24% in the last 12 months as it integrates AI technology into its Search and other businesses. Price Action: GOOGL stock is up 0.27% at $162.73 at the last check on Wednesday. Also Read: Apple iPhone To Fuel 96% Of 2025 Revenue, Analyst Says: A Safer Bet Than AI-Heavy Amazon, Alphabet, Microsoft, Meta? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

Google reportedly wrote a $2.7 billion cheque to bring back Character.AI co-founder Noam Shazeer: Here's why

Google has reappointed Noam Shazeer, a key figure in AI known for developing LaMDA. After leaving Google in 2021 to co-found Character.AI, Shazeer reportedly returns as part of a $2.7 billion deal. This move highlights Google's strategy to enhance its AI capabilities through external partnerships.Google has reappointed Noam Shazeer, a prominent figure in artificial intelligence known for developing the Language Model for Dialogue Applications (LaMDA). Google's parent firm Alphabet Inc paid billions to bring Shazeer on board, reportedly for an ambitous project. However, isn't Shazeer's first stint with Google. He quit the tech giant in October 2021, when he co-founded Character.AI, a chatbot startup that attracted heavy investments, including funding from venture capitalist Andreessen Horowitz. To secure Shazeer's expertise, Google reportedly invested around $2.7 billion to license Character.AI's technology. Google acquired stakes from Character.AI's investors and employees, resulting in a substantial payout for Shazeer, as reported by the Wall Street Journal. Shazeer's rehiring comes as part of a broader collaboration between Google and Character.AI. The two companies have signed a non-exclusive agreement to utilize Character.AI's technology, a move that reflects Google's strategy to enhance its AI capabilities through external partnerships. Alongside Shazeer, several other key personnel from Character.AI will assume leadership roles at DeepMind, Google's AI research lab. Dominic Perella, the general counsel of Character.AI, will serve as interim CEO of the startup during this transition. Despite its success, with over 20 million monthly active users, Character.AI has faced difficulties in monetising its services and managing user behavior. These challenges expose the complexities within the AI industry, where user engagement does not necessarily translate into revenue, raising questions about sustainability. Shazeer will reportedly play a pivotal role in leading Google's latest AI initiative, Gemini. He is one of three leaders steering this project, and his experience will be critical in navigating the challenges and expectations surrounding its development. Noam Shazeer's rehire by Google signals a strategic shift in its approach to AI, focusing on collaboration and investment. While this move has the potential to enhance Google's AI capabilities, it also raises questions about the long-term sustainability of Character.AI and the broader implications for the tech industry.