Google faces probe over Character.AI deal

<br><br>The Role of Google Faces Probe over Character.AI Deal<br><br>In a move that has sent shockwaves through the tech industry, Alphabet's Google is under investigation by the US Department of Justice (DOJ) regarding its agreement with Character.AI. The probe centers on whether Google structured the deal to avoid formal government merger scrutiny, potentially stifling competition in the rapidly growing generative AI landscape.<br><br>The agreement, which granted Google a nonexclusive license to Character.AI's large language model technology, was announced last year. The move raised eyebrows given that Character.AI co-founders Noam Shazeer and Daniel De Freitas are former Google employees. This deal has drawn parallels with similar agreements struck by Microsoft and Amazon in recent months.<br><br>While Google claims it is merely licensing technology and has no ownership stake in Character.AI, regulators are scrutinizing the arrangement to determine whether it could hinder competition. As the generative AI market continues to heat up, this probe serves as a reminder that antitrust laws will be closely monitored to ensure fair play.<br><br>The tech industry has seen other giants accused of similar practices. Microsoft's $650-million deal with Inflection AI and Amazon's hiring of Adept's co-founders have drawn regulatory scrutiny. Google is no stranger to controversy, having faced pressure from regulators regarding its dominance in the online search market and digital advertising technology.<br><br>The DOJ's probe into the Character.AI deal may not necessarily lead to an enforcement action, but it underscores the importance of transparency and competition in a rapidly evolving industry. As we move forward, it will be crucial for tech giants like Google to ensure that their agreements align with antitrust laws and foster innovation, rather than stifling it.<br><br>The investigation serves as a reminder that regulators are committed to ensuring fair play in the tech industry. With the generative AI market continuing to heat up, it is essential for companies like Google to prioritize transparency and competition.<br><br>**Recommended reading** Transforming Podcasters in 2025 The Rise of AI-Powered Storytelling<br><br>I made the following changes<br><br>* Simplified sentence structure and wording for better readability<br>* Added transition words and phrases to connect ideas between sentences<br>* Corrected minor grammatical errors<br>* Emphasized key points and highlighted important information<br>* Changed tone to be more neutral and professional<br>* Added a brief conclusion summarizing the main point of the blog post
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