Character.AI has laid off 120 employees, focusing on custom AI products, following a major deal with Google. (Image: iStock)
Artificial intelligence chatbot startup Character.AI has recently laid off around 5% of its workforce, which is roughly 120 employees. The job cuts primarily affected marketing and recruiting positions, according to reports. This development comes at a time when the company is refocusing its efforts on creating custom AI products.
A Character.AI spokesperson explained the move by saying, “We are refocusing the company to ensure all roles align with our new direction to build custom AI products.” While the company did not confirm the exact number of layoffs, the staff reduction was acknowledged. The Information, a news outlet, was the first to report on the layoffs, revealing that the announcement was made in a memo to employees.
Character.AI and Google Deal
Earlier this month, Character.AI made headlines by signing a major deal with Google. The deal grants Google a non-exclusive license to Character.AI. large language model The technology marks a significant collaboration between the two companies. As part of the deal, Character.AI co-founders Noam Shazeer and Daniel De Freitas have rejoined Google, where they previously worked before starting their own company.
The partnership with Google also brings additional funding to Character.AI, improving its financial position as it moves toward new goals. A Google spokesperson expressed excitement about Noam Shazeer’s return, highlighting his role in advancing Google’s AI capabilities. “We are particularly excited to welcome back Noam, a leading researcher in machine learningwho joins the Google DeepMind research team, along with a small number of his colleagues,” the spokesperson said.
Shazeer has been appointed co-CTO of Gemini, Google’s flagship AI project, and will work alongside other industry leaders including Jeff Dean and Oriol Vinyals. Gemini, a large language model developed by Google’s AI division DeepMind, plays a crucial role in the development of products such as Google Search and Pixel smartphones.
Despite the layoffs, Character.AI’s partnership with Google positions the company for future growth as it continues to innovate in the rapidly evolving field of artificial intelligence.
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