Google Faces Antitrust Heat as DOJ Investigates Character.AI Collaboration

The US Justice Department has opened a civil antitrust investigation into Google’s partnership with AI startup Character.AI, Bloomberg Law reports. Regulators are examining whether Google’s 2023 deal—granting it a non-exclusive license to Character.AI’s chatbot technology and rehiring the startup’s co-founders—was structured to avoid formal merger scrutiny and potentially stifle competition in the fast-growing AI sector.

 

While Google insists it has no ownership stake and Character.AI remains independent, the DOJ is probing if the arrangement mimics a merger’s effects by absorbing top talent and privileged access to proprietary tech. The investigation is in early stages, and Google has not been accused of wrongdoing. This probe adds to Google’s mounting legal challenges, as it already faces two major antitrust suits over its dominance in search and digital ads.

 

Source: Bloomberg Law, Reuters, Fortune