Old Employees, New Dollars — Google’s $2.7 Billion Investment in Character.AI’s Reverse Acquihire for AI Innovation!

The tech giant has orchestrated a rare “reverse acquihire,” bringing the AI pioneer back into the fold without buying out Character.AI.
When Noam Shazeer left Google in 2021, it wasn’t on the best of terms. Frustrated by the company’s refusal to release a chatbot he had developed, Shazeer made a bold decision: he walked away from one of the world's most powerful tech companies and co-founded Character.AI. The startup was a rebellious new venture, pushing the boundaries of conversational AI by allowing users to create custom AI companions, interact with fictional personas, and even tap into the future of artificial general intelligence (AGI). In less than two years, Character.AI skyrocketed, reaching a $1 billion valuation, with millions of users flocking to the platform each month. But now, in an unexpected and somewhat controversial twist, Shazeer and Daniel De Freitas are heading back to Google—along with 30 top
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Anshika Mathews
Anshika is the Senior Content Strategist for AIM Research. She holds a keen interest in technology and related policy-making and its impact on society. She can be reached at anshika.mathews@aimresearch.co
25 July 2025 | 583 Park Avenue, New York
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