Google Paid $2.7 Billion To Bring Back an AI Genius Who Quit in Frustration

At a time when tech companies are paying eye-popping sums to hire the best minds in artificial intelligence, Google's deal to rehire Noam Shazeer has left others in the dust. From a report: A co-author of a seminal research paper that kicked off the AI boom, Shazeer quit Google in 2021 to start his own company after the search giant refused to release a chatbot he developed. When that startup, Character.AI, began to flounder, his old employer swooped in.

Google wrote Character a check for around $2.7 billion, according to people with knowledge of the deal. The official reason for the payment was to license Character's technology. But the deal included another component: Shazeer agreed to work for Google again. Within Google, Shazeeer's return is widely viewed as the primary reason the company agreed to pay the multibillion-dollar licensing fee. The arrangement has thrust him into the middle of a debate in Silicon Valley about whether tech giants are overspending in the race to develop cutting-edge AI, which some believe will define the future of computing.

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