Latest news with #PeterSchottenfels
Yahoo
23-05-2025
- Business
- Yahoo
US DOJ probing Google over Character.AI deal
The US Justice Department (DOJ) is examining whether Alphabet's Google violated antitrust regulations through a deal involving the AI technology of a well-known chatbot developer, Bloomberg reported. Regulators are assessing whether the tech giant crafted the agreement to avoid formal merger oversight, sources familiar with the investigation told the publication. In the arrangement made in 2024, founders returned to Google, and the company obtained a non-exclusive license to utilise the startup's technology. The raised concerns among regulators about large tech companies suppressing emerging competitors. Google is 'always happy to answer any questions from regulators,' Peter Schottenfels, a company spokesperson in an emailed statement to the publication said. 'We're excited that talent from has joined the company, but we have no ownership stake and they remain a separate company.' The Justice Department can investigate whether the deal itself undermines competition, even if it did not require formal review, the report said. The inquiry is in its preliminary phase, and no accusations of misconduct have been made against Google. The probe may not lead to any enforcement action, the report added. recognised for its chatbots that can emulate various personalities or entities, was founded by ex-Google researchers who later rejoined the company with part of their research team. In August 2024, the publication reported that the deal valued at $2.5bn, with investors' shares bought out and the startup agreeing to a non-exclusive licensing deal for its large language model technology. continues to operate as an independent entity. The probe adds to Google's antitrust challenges, following court rulings that deemed the company's dominance in online search and advertising technology markets unlawful. In the search case, the Justice Department has recommended that Google divest its Chrome browser to foster competition and has requested a judicial ban on Google's payments for default search engine status, including for AI products. A decision is anticipated this summer. Earlier in May 2025, Google agreed to pay the State of Texas $1.375bn to resolve data-privacy claims. "US DOJ probing Google over deal" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
23-05-2025
- Business
- The Star
Google faces antitrust investigation over deal for AI-fuelled chatbots
Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, California on May 20, 2025. Google hasn't been accused of wrongdoing as part of the antitrust probe, which is in early stages and may not lead to an enforcement action. — AP The US Justice Department is probing whether Alphabet Inc's Google violated antitrust law with an agreement to use the artificial intelligence technology of a popular chatbot maker, according to people with knowledge of the matter. Antitrust enforcers have recently told Google they're examining whether it structured an agreement with the company known as to avoid formal government merger scrutiny, said the people, who asked not to be identified discussing the confidential probe. In a deal with Google last year, the founders of the chatbot maker joined the search firm, which also got a non-exclusive license to use their venture's technology. Deals like the one Google struck have been hailed in Silicon Valley as an efficient way for companies to bring in expertise for new projects. However, they've also caught the attention of regulators wary of mature technology companies using their clout to head off competition from new innovators. Google is "always happy to answer any questions from regulators,' Peter Schottenfels, a company spokesperson, said in an e-mailed statement. "We're excited that talent from has joined the company but we have no ownership stake and they remain a separate company.' The Justice Department can scrutinize whether the transaction itself is anticompetitive even if didn't require a formal review. Google hasn't been accused of wrongdoing as part of the antitrust probe, which is in early stages and may not lead to an enforcement action. A spokesperson for the Justice Department declined to comment. A representative for didn't respond to requests for comment. Starting under the Biden administration, enforcers began scrutinizing competition throughout the rapidly evolving AI ecosystem, including specialized chips and the supply of computing power. As part of that focus, the government is looking at whether partnerships with AI startups give the largest tech companies an unfair advantage as the technology develops. is known for chatbots that can virtually mimic anyone or anything. Its founders previously worked at Google before leaving several years ago to start the new company. Following the deal, they rejoined Google last year, along with some members of its research team. Bloomberg reported in August that under its deal with Google, existing investors were to see shares bought out at a price that would translate to a US$2.5bil (RM10.64bil) valuation for the company. As part of the deal, the startup entered into a non-exclusive licensing deal with Google for its large language model technology. meanwhile continues to exist. The Justice Department civil investigation ramps up antitrust scrutiny on Google following federal court rulings that the company had illegal monopolies in the online search and advertising technology markets. In the online search case, the Justice Department has proposed forcing Google to spin off its Chrome browser as a way to restore competition in search market. As part of the case, the government has also urged a judge to ban Google from paying for search engine defaults, including with AI products, and allow enforcers to examine any AI-related acquisition by the company, regardless of whether it triggers the threshold for a formal review. A ruling is expected in the summer. – Bloomberg
NDTV
23-05-2025
- Business
- NDTV
Google Faces Anti-Trust Investigation Over Deal For AI Chatbots
The Justice Department is probing whether Alphabet Inc.'s Google violated antitrust law with an agreement to use the artificial intelligence technology of a popular chatbot maker, according to people with knowledge of the matter. Antitrust enforcers have recently told Google they're examining whether it structured an agreement with the company known as to avoid formal government merger scrutiny, said the people, who asked not to be identified discussing the confidential probe. In a deal with Google last year, the founders of the chatbot maker joined the search firm, which also got a non-exclusive license to use their venture's technology. Deals like the one Google struck have been hailed in Silicon Valley as an efficient way for companies to bring in expertise for new projects. However, they've also caught the attention of regulators wary of mature technology companies using their clout to head off competition from new innovators. Google is "always happy to answer any questions from regulators," Peter Schottenfels, a company spokesperson, said in an e-mailed statement. "We're excited that talent from has joined the company but we have no ownership stake and they remain a separate company." The Justice Department can scrutinize whether the transaction itself is anticompetitive even if didn't require a formal review. Google hasn't been accused of wrongdoing as part of the antitrust probe, which is in early stages and may not lead to an enforcement action. A spokesperson for the Justice Department declined to comment. A representative for didn't respond to requests for comment. Starting under the Biden administration, enforcers began scrutinizing competition throughout the rapidly evolving AI ecosystem, including specialized chips and the supply of computing power. As part of that focus, the government is looking at whether partnerships with AI startups give the largest tech companies an unfair advantage as the technology develops. is known for chatbots that can virtually mimic anyone or anything. Its founders previously worked at Google before leaving several years ago to start the new company. Following the deal, they rejoined Google last year, along with some members of its research team. Bloomberg reported in August that under its deal with Google, existing investors were to see shares bought out at a price that would translate to a $2.5 billion valuation for the company. As part of the deal, the startup entered into a non-exclusive licensing deal with Google for its large language model technology. meanwhile continues to exist. The Justice Department civil investigation ramps up antitrust scrutiny on Google following federal court rulings that the company had illegal monopolies in the online search and advertising technology markets. In the online search case, the Justice Department has proposed forcing Google to spin off its Chrome browser as a way to restore competition in search market. As part of the case, the government has also urged a judge to ban Google from paying for search engine defaults, including with AI products, and allow enforcers to examine any AI-related acquisition by the company, regardless of whether it triggers the threshold for a formal review. A ruling is expected in the summer.
The Verge
22-05-2025
- Business
- The Verge
May 22, 2025 at 5:44 PM EDT
Google is reportedly facing an antitrust probe over its deal. The Justice Department is investigating whether Google crafted its agreement to skirt regulatory scrutiny, Bloomberg reports. The deal brought co-founders back to Google and didn't technically involve an exchange of shares, though investors were set to receive a payout, The Verge previously reported. Google spokesperson Peter Schottenfels told Bloomberg that Google is 'always happy to answer any questions from regulators,' and added that remains separate, with no ownership stake by Google.
Mint
22-05-2025
- Business
- Mint
Google-Character.AI partnership draws US antitrust scrutiny amid growing AI concerns
The United States Justice Department has launched a preliminary investigation into whether Google violated antitrust laws through a partnership with artificial intelligence startup reported Bloomberg citing sources. Authorities are reportedly examining whether the deal was deliberately structured to bypass formal regulatory scrutiny typically associated with mergers or acquisitions. Though no official charges have been filed, the inquiry highlights growing concern among regulators that major technology firms may be leveraging such partnerships to suppress emerging competition in the fast-moving AI sector. Under the agreement, Google secured a non-exclusive licence to use large language model technology. Additionally, the founders of the startup, who previously worked at Google, rejoined the tech giant last year, accompanied by some members of their research team. Despite this, remains an independent company, and Google has no ownership stake, a company spokesperson confirmed. Peter Schottenfels, a spokesperson for Google, stated in an emailed response, 'We're excited that talent from has joined the company but we have no ownership stake and they remain a separate company. We're always happy to answer any questions from regulators.' The Justice Department's investigation reflects a broader strategy adopted during the Biden administration to intensify scrutiny of potential anti-competitive behaviour across the burgeoning AI ecosystem. This includes analysing partnerships involving advanced computing infrastructure and AI models, where established tech firms may be using their financial power to gain disproportionate advantages. Bloomberg previously reported that the deal included a provision allowing existing investors to sell their shares at a valuation pegged at approximately $2.5 billion. While the transaction was not subject to a formal antitrust review at the time, investigators are now exploring whether such arrangements could be anticompetitive in nature. The civil inquiry comes amid heightened legal pressures on Google, which has already been found by US courts to have maintained unlawful monopolies in both the online search and digital advertising markets. In one of the ongoing legal battles, the Justice Department has proposed remedies that could include separating Google's Chrome browser business from its search operations. In that same case, regulators are also seeking judicial approval to bar Google from striking default search engine agreements, particularly those tied to AI products and to grant antitrust enforcers the power to review all future AI-related acquisitions or collaborations, regardless of their size. known for its ability to generate chatbots that can emulate virtually any persona or concept, has grown rapidly in popularity. The startup's technology has been lauded for its versatility but also sits at the centre of regulatory debates about data use, competition, and ethical AI deployment. While it remains uncertain whether the current probe will lead to enforcement action, it signals a clear intent by regulators to stay ahead of potential monopolistic practices in AI. (With inputs from Bloomberg)
