Washington, D.C., May 23, 2025 – The U.S. Department of Justice (DOJ) has opened an antitrust investigation into Google’s recent deal with AI startup Character.AI. The probe centers around concerns that Google’s non-exclusive licensing agreement for Character.AI’s chatbot technology and the hiring of its co-founders could be a strategy to avoid traditional merger scrutiny. Although Google claims no ownership in the startup, regulators are assessing whether the partnership could suppress competition in the emerging AI industry.
This latest investigation adds to a series of legal issues Google faces, particularly regarding its dominance in digital advertising and search. The outcome could significantly impact how large tech companies form strategic alliances with AI innovators. It signals growing regulatory oversight of Big Tech’s role in shaping the future of artificial intelligence and the potential for these partnerships to limit market competition.
