Overview

• The U.S. Department of Justice has launched a civil antitrust investigation into Google's 2024 deal with AI startup Character.AI.
• Regulators are assessing if the agreement, which included a non-exclusive license to Character.AI's technology and the hiring of its co-founders, was designed to avoid formal merger review.
• Google has stated it holds no ownership stake in Character.AI, which remains an independent company, and is cooperating with the investigation.
• The probe is in its early stages, and no enforcement action has been taken or accusations of wrongdoing made against Google at this time.
• This inquiry reflects a broader regulatory focus on Big Tech's AI partnerships, with similar deals by Microsoft and Amazon also under scrutiny.