• Home
  • Google faces antitrust probe over…

Google faces antitrust probe over AI Chatbot deal

Google launches AI-powered app NotebookLM

The United States Justice Department is investigating whether Alphabet Inc.’s Google violated antitrust laws through a deal with Character.AI, a prominent chatbot developer, sources familiar with the matter revealed.

The probe focuses on whether Google structured the agreement to evade formal merger scrutiny by regulators, according to individuals who spoke on condition of anonymity due to the confidential nature of the investigation.

Last year, Google struck a deal with Character.AI, bringing the startup’s founders into its fold and securing a non-exclusive license to use the company’s artificial intelligence technology. Such arrangements, often praised in Silicon Valley for efficiently integrating expertise into new projects, are increasingly drawing regulatory attention.

Antitrust enforcers are scrutinizing whether large tech firms like Google leverage their dominance to stifle competition from emerging innovators.

Google is “always happy to answer any questions from regulators,” Peter Schottenfels, a company spokesperson, said in an e-mailed statement. “We’re excited that talent from Character.Ai has joined the company but we have no ownership stake and they remain a separate company.”

The Justice Department can examine whether the transaction is anticompetitive even if it didn’t require formal review. Google has not been accused of any wrongdoing in the early stages of the antitrust investigation, which may not result in enforcement action.

A Justice Department spokesperson declined to comment, and Character.AI did not respond to requests for comment.

Character.AI is known for creating chatbots that can virtually mimic anyone or anything. Its founders, who previously worked at Google, left several years ago to start the company.

After the deal, they and some members of its research team rejoined Google last year.

 

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Email Us: [email protected]