Google has made a bold and expensive decision, spending $2.7 billion to bring back a former employee who left in frustration just a few years ago. Noam Shazeer, a top AI engineer, has returned to the tech giant through a somewhat sneaky process called ‘reverse acqui-hire’. But why the hefty price tag, that too for one person?

Well, it’s not just about the money — it’s about what this deal means for the future of AI and competition in the industry.

At a time when tech layoffs are becoming the norm, Google’s willingness to spend billions on rehiring an individual may seem odd, but it also sends a strong message: AI is the battlefield, and They are determined to win, no matter what. Cost

But the move also raises concerns about how much power big companies like Google could wield in the AI ​​space, potentially stifling innovation from smaller players.

Who is Noam Shazier, and why is Google obsessed with him?
Noam Shazier is not just any engineer. He is one of the brains behind some of the most important AI developments in recent years. He first joined Google in 2000 and spent two decades making significant contributions, most notably co-authoring the 2017 research paper Attention is All You Need.

That paper laid the foundation for AI tools we now take for granted, such as ChatGPT and Google’s own Gemini. Consider Shazier the father of modern-day AI chatbots.

Frustration at Google and Alphabet’s Leadership
But things are not rosy at Google. In 2020, Shazeer and a colleague, Daniel De Freitas, created a chatbot called Meena, designed to have intelligent conversations on a variety of topics.

However, Google refused to launch it, fearing that the bot might say something inappropriate. Frustrated, Shazier left in 2021, taking De Freitas with him.

The two launched Character.ai, a chatbot platform that allowed users to interact with AI models representing celebrities, fictional characters, and even language teachers. It was a hit, raising $43 million in seed funding and attracting millions of users within weeks of its beta release.

But despite the initial success, *Character.ai* faced financial challenges. The cost of keeping the technology alive was becoming increasingly difficult to manage, and the platform wasn’t moving far enough in the direction they wanted, with many users wanting AI-generated romantic conversations.

Clever move by Google or just money power?
Fast forward to 2024, and Google has opened its wallet to $2.7 billion to bring Shazeer, De Freitas, and the Character.AI tech team back under its roof. It wasn’t a simple buyout but a clever ‘reverse-acquire-hire’ deal, where Google didn’t acquire the company outright. Instead, they licensed the tech and rehired key staff.

This approach allowed Google to avoid regulatory concerns around monopolies and antitrust violations, which would have been triggered by a full acquisition.

The deal has drawn comparisons to similar moves by other tech giants, such as Microsoft’s $650 million deal with Inflection AI and Amazon’s recent partnership with Covariant. The common thread in these deals?

Big Tech is moving to AI talent.
Big tech is strategically acquiring talent and technology without triggering legal scrutiny, raising concerns about whether it’s fair to smaller, independent firms. After all, competition is key in the AI ​​space, especially in its early stages, where fresh ideas and innovation are vital.

Shazier’s return to Google put him in a leadership role for their main AI project, Gemini, alongside other heavyweights like Jeff Dean and Oriole Vinales. As the AI ​​race heats up, Google is clearly making sure it has the best minds to stay ahead.

But with all eyes on the tech industry’s evolution, this megadeal will no doubt spark plenty of debate about the future of AI and the balance of power between big corporations and emerging innovators.