DOJ probes Google over Character.AI deal, says report
At the heart of the probe is a licensing agreement signed last year, which gave Google non-exclusive rights to Character.AI’s large language model (LLM) technology.
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The U.S. Department of Justice (DOJ) is investigating whether Google violated antitrust laws through its deal with Character.AI, a rising artificial intelligence startup, according to a Bloomberg Law report.
At the heart of the probe is a licensing agreement signed last year, which gave Google non-exclusive rights to Character.AI’s large language model (LLM) technology. The DOJ is reportedly examining whether the arrangement was structured to sidestep formal government merger review, potentially constituting an anti-competitive maneuver.
The agency is also looking into Google’s decision to hire Character.AI co-founders, Noam Shazeer and Daniel De Freitas, both former Google engineers—raising further questions about the depth of the integration between the two companies.
As per the report, in a statement, a Google spokesperson said, “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.”
The investigation reflects growing regulatory scrutiny over Big Tech’s influence in the AI sector, where giants like Google, Microsoft, and Amazon are rapidly partnering with or investing in smaller AI firms, sometimes blurring the lines between collaboration and acquisition.
The DOJ has not made any formal accusations yet, and both Google and Character.AI continue to operate independently.
