Character.AI’s founders, Noam Shazeer and Daniel De Freitas, are rejoining Google’s AI division, DeepMind, alongside key members of their team. Character.AI, a startup known for its advanced chatbot technology, achieved a $1 billion valuation last year but has yet to generate revenue.

Shazeer and De Freitas, who left Google in 2021 to start Character.AI after their chatbot proposals were declined, are bringing their expertise back to Google. The new arrangement includes a non-exclusive license for Character.AI’s large language model (LLM) technology, aimed at enhancing Google’s AI capabilities while fueling Character.AI’s growth.

The partnership comes as Google faces stiff competition in the AI space, particularly from OpenAI’s ChatGPT. Alphabet is striving to accelerate its AI advancements, partly through strategic investments and partnerships. In a recent statement, Shazeer expressed enthusiasm about returning to Google, highlighting the promising future for both companies under the new agreement.

The move aligns with broader trends in the AI industry, where companies are forming partnerships and navigating regulatory scrutiny. Google’s re-engagement with Shazeer and De Freitas reflects its commitment to advancing AI technology amid a competitive landscape.