The video explains that Google’s deal with Character.AI, involving re-hiring a top AI expert, is under DOJ investigation due to concerns over “take under” tactics where big tech firms acquire AI talent in ways that may stifle competition and innovation. It highlights a broader trend of major companies, like Microsoft and Amazon, heavily investing in AI talent through similar “acqui hires,” raising regulatory concerns about their impact on the AI industry.
The video discusses Google’s recent involvement in a potential investigation by the Department of Justice (DOJ) concerning a multibillion-dollar deal with Character.AI. This deal involved Google effectively re-hiring one of its top AI experts from his startup, Character.AI, raising concerns about the nature of such acquisitions. The DOJ’s scrutiny highlights broader regulatory worries about how big tech companies are acquiring AI talent, especially through deals that resemble “take unders” rather than traditional mergers and acquisitions.
These “take unders” are strategic moves where large tech firms acquire key AI talent by hiring individuals away from startups, often leaving those startups significantly weakened or effectively dismantled. Unlike typical acquisitions, these deals often leave the startup technically independent but in practice absorbed or rendered irrelevant, with founders leaving and the company’s direction being absorbed into the larger corporation. This practice has drawn regulatory attention as it may stifle competition and innovation in the AI space.
The video emphasizes that in the current AI talent wars, the most valuable assets are not just products but the people behind them. High-profile deals include Jony Ive’s $6.5 billion move to OpenAI, despite his startup not having a product yet, and Microsoft’s acquisition of inflection AI to bring in Mustafa Suleyman. Google’s deal to bring back Ilya Sutskever, a co-founder of the transformer model, is another example, where Google acknowledged that the startup remains independent but is effectively influenced by the tech giant.
Furthermore, the video notes that other major players like Amazon have also engaged in similar talent acquisitions, such as acquiring AI startup Adept, though the financial details remain undisclosed. These moves underscore a trend where companies are investing heavily in AI talent, often more than in the products themselves, to secure a competitive edge in the AI race. Interestingly, Apple has largely stayed out of this talent war, which is becoming more apparent as other tech giants aggressively pursue top AI minds.
The discussion concludes by clarifying that many of these deals are not traditional acquisitions but rather “acqui hires,” where talent is taken without formal mergers. This practice is seen as a way for big tech to circumvent regulatory scrutiny and quickly bolster their AI capabilities. The DOJ’s investigation into Google’s deal with Character.AI reflects concerns about the broader implications of these tactics, which could impact competition and innovation in the rapidly evolving AI industry.