Google announced its decision to hire the cofounders of AI startup Character.AI, Noam Shazeer and Daniel De Freitas, along with some members of their research team, while licensing their technology.

Character.AI, founded in 2021, gained prominence for its innovative chatbot platform, allowing users to create millions of chatbots based on various personas.

Despite the leadership changes, most of Character.AI's staff will remain with the company, as the founders transition to Google.

As part of the agreement, Google will provide increased funding to Character.AI to support its growth and focus on developing personalized AI products.

Character.AI reached a valuation of $1 billion during the AI boom last year, despite not generating revenue at that time.

The startup secured over $150 million in funding from venture capital firms, including Andreessen Horowitz, to develop its AI chatbots.

Shazeer has raised existential questions about AI development, pondering the role of humans in an increasingly automated world.

This move by Google reflects its strategy to respond more quickly to market demands, especially after criticism for lagging behind competitors like OpenAI.

The practice of 'acquihiring' is becoming common in the tech industry, allowing companies to absorb talent without a full acquisition.

There are rumors that Elon Musk's xAI is considering acquiring Character.AI, although the company has declined to comment on this speculation.

Shazeer and De Freitas left Google to start Character.AI after their proposal for advancing a chatbot was rejected, leading to their successful venture.

Shazeer believes the effectiveness of large language models is still not fully understood, comparing the field to experimental sciences like alchemy.