Overview

• The U.S. Department of Justice has launched an early-stage antitrust investigation into Google's 2024 deal with AI startup Character.AI.
• Authorities are examining whether the arrangement, which included a non-exclusive licensing agreement and the hiring of Character.AI's co-founders, was designed to avoid formal merger review.
• Google maintains that it has no ownership stake in Character.AI, which remains an independent company, and denies any wrongdoing.
• The investigation is part of a broader regulatory effort under the Biden administration to scrutinize Big Tech's influence in the rapidly evolving AI sector.
• No formal allegations have been made, and the outcome of the DOJ's inquiry remains uncertain at this early stage.