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Sept. 28, 2024, 4:30 a.m.
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Google's $2.7 Billion Bet on AI Expert Noam Shazeer

"Noam is undoubtedly an exceptional talent in this field. But is he really 20 times better than his peers?" **The Talented Mr. Shazeer** Google reportedly invested $2. 7 billion to bring back AI expert Noam Shazeer — a staggering sum for the expertise of just one computer scientist. Shazeer left Google in 2021 after spending 21 years there to launch his startup Character. AI, which enables users to engage with chatbots that emulate fictional characters or well-known personalities. While Google officially stated that the vast sum was to license Character. AI's technology, the Wall Street Journal notes that "Shazeer's return is widely seen as the main reason" for the investment. This deal underscores the immense financial resources tech companies are allocating in the race to dominate AI. Simultaneously, Silicon Valley investors have grown increasingly wary that firms like Google and Microsoft are squandering billions with no immediate returns, potentially inflating a significant bubble that could burst. Such a scenario is exemplified by a company spending nearly three billion dollars on re-hiring one engineer. "Noam is undeniably a formidable figure in that arena, " remarked Christopher Manning, director of Stanford's Artificial Intelligence Laboratory, in a WSJ interview. But is he "20 times as good as others?" **Window Shopping** Although Shazeer was not the sole beneficiary of Google's $2. 7 billion, he reportedly gained hundreds of millions from his equity in the startup as part of the agreement, according to WSJ sources.

That’s still an impressive payday, particularly given that Shazeer did not sell his venture. He played a crucial role in Google's early AI initiatives, with a 2017 paper he co-authored seen as a foundational work leading to the large language models we recognize today. Shazeer has openly claimed credit for his contributions, stating on LinkedIn, "I have invented much of the current revolution in large language models. " His exit from Google followed the company's decision not to publicly release the Meena chatbot in 2021 due to safety concerns, according to the WSJ. Ironically, just a year later, OpenAI launched ChatGPT, marking a significant missed opportunity for Google. In August, it was announced that Shazeer would return to Google under a deal involving Alphabet, Google's parent company, and Character. AI. Many similar agreements demonstrate that tech giants such as Microsoft and Amazon are competing to acquire top AI talent like Shazeer. In June, for instance, Amazon brought in executives from the AI startup Adept through a technology licensing arrangement. As these companies continue to invest billions in an environmentally harmful and still largely untested technology, investors are beginning to raise critical questions. Should they really be spending several billion dollars for the expertise of a single hire, or is it a massive expenditure unlikely to yield a return?For now, we can only observe how this unfolds. For more on Google: AI Data Centers More Than 600 Percent Worse for Environment Than Tech Companies Claimed.



Brief news summary

Noam Shazeer's return to Google, after a $2.7 billion deal, highlights the intense rivalry in the AI sector. After spending 21 years at Google, Shazeer co-founded Character.AI in 2021, specializing in character-driven chatbots. Google's investment aims to leverage Character.AI's groundbreaking technology, with Shazeer's knowledge playing a vital role. His significant contributions, particularly a landmark 2017 paper on large language models, have greatly influenced AI development. His exit coincided with Google's cautious launch of the Meena chatbot. Although he did not receive the full deal amount, the potential advantages are considerable. This situation raises investor apprehensions about the heavy expenditures on individual talent amid an uncertain return environment, suggesting inflation risks within the tech industry as firms seek to attract top professionals. As competition in AI grows, critical questions regarding economic sustainability and the future of Silicon Valley are being raised.
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