Google's $2.7 billion acquisition of a license to use AI chatbot startup Character.AI's technology is more than just a licensing deal. It's a strategic move to bring back Noam Shazeer, a former Google employee who left in 2021 after developing an AI chatbot that Google refused to release to the public.
Amazon's recent agreement to license AI models from Covariant, an AI robotics startup, mirrors Google's move. Amazon is not only obtaining access to Covariant's advanced AI models but also bringing onboard the startup's co-founders and several employees. This is a clear indication of Amazon's commitment to attracting and retaining top AI talent, similar to Google's approach with Shazeer.
The agreements between Google and Character.AI and Amazon and Covariant highlight a larger trend in the tech industry: the increasing importance of attracting and retaining top AI talent. These agreements represent a strategic shift from traditional acquisitions to licensing deals that allow big tech companies to tap into the expertise of smaller, more agile AI startups.
The race to dominate the AI landscape is intensifying. With the rise of ChatGPT and other powerful AI models, big tech companies are scrambling to secure the talent and technology needed to stay ahead. Licensing agreements like those made by Google and Amazon are likely to become increasingly common as companies seek to leverage the best minds and the most innovative solutions in the field of AI.
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