Google Paid $2.7 Billion to Get a Single AI Researcher Back.
Google has made a significant investment in the field of artificial intelligence by spending $2.7 billion to rehire AI expert Noam Shazeer. Shazeer, who left Google in 2021 after 21 years at the company, had started his own startup called Character.AI, which allows users to interact with chatbots that roleplay as imaginary characters or well-known figures.
The official reason Google gave billions of dollars to the startup was to license its technology. However, as the Wall Street Journal reports, “Shazeer’s return is widely viewed as the primary reason” for the tech giant’s substantial investment. This deal highlights the intense competition in the AI industry, where companies are willing to spend enormous sums to gain a competitive edge.
Shazeer was a foundational part of Google’s early efforts to develop AI. A 2017 paper he coauthored is largely seen as the early dawn of the large language models as we know them today. He is not shy about his contributions, claiming on LinkedIn that “I have invented much of the current revolution in large language models.”
Shazeer left Google after the company refused to release a chatbot dubbed Meena to the public in 2021, citing safety concerns. Ironically, OpenAI released ChatGPT one year later, which has become a significant player in the AI chatbot market.
The return of Shazeer is part of a broader trend where tech giants like Google, Microsoft, and Amazon are racing to secure top AI researchers. In June, Amazon hired top executives from an AI startup called Adept through a technology licensing deal. This aggressive pursuit of AI talent has raised concerns among investors about the environmental impact and the financial sustainability of these investments.
While Shazeer raked in hundreds of millions of dollars from his stake in the startup as part of the deal, the question remains whether such massive investments will yield significant returns. The deal underscores the immense financial stakes in the AI arms race, with investors growing increasingly skeptical about the potential for profit in this field. As companies continue to pour billions into AI research, the tech industry is facing a critical juncture where the cost of training these models and keeping them running is outpacing revenue, raising concerns about the long-term viability of these investments.
