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U.S. DOJ Probes Google Over Licensing Deal with Character.AI

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The U.S. Department of Justice is investigating whether Google’s licensing deal with AI startup Character.AI violated antitrust laws, according to a report by Bloomberg Law. The probe focuses on whether the deal was deliberately structured to sidestep formal merger review processes.

Key Points:

  • Nature of the Deal: In 2023, Google secured a non-exclusive license to Character.AI’s large language model (LLM) technology and subsequently hired the company’s co-founders, Noam Shazeer and Daniel De Freitas—both former Google engineers.

  • Regulatory Concern: Antitrust officials are questioning if this agreement—despite not involving an acquisition—effectively gave Google undue influence or control over Character.AI’s technology, potentially undermining market competition in the fast-growing generative AI sector.

  • Google’s Response: A spokesperson stated that Google has no ownership stake in Character.AI and that the company remains independent. “We’re always happy to answer any questions from regulators,” the spokesperson said.

  • Ongoing Scrutiny: The probe is at an early stage and may not result in formal action, but it signals heightened regulatory vigilance over AI partnerships. The DOJ can still act if the deal is deemed anti-competitive, even without triggering a formal merger review.

  • Industry Trend: Similar AI talent and technology acquisition strategies have been employed by:

    • Microsoft, which paid $650 million to license Inflection AI’s models and onboard its team.

    • Amazon, which hired Adept’s co-founders and staff in 2023.
      Both deals have also drawn regulatory interest.

  • Broader Context: Google is already facing two major antitrust lawsuits from the DOJ targeting its dominance in search and digital advertising. Earlier this month, the Federal Trade Commission (FTC) supported a proposal requiring Google to share its search data with rivals.

Strategic Implications:

The inquiry reflects regulators’ growing concern that Big Tech may be circumventing antitrust oversight through creative structuring of AI-related partnerships. As companies compete to lead in generative AI, expect increased scrutiny on licensing, hiring, and technology transfer deals that could entrench market power.

Right-Wing Social Media Stars Unwittingly Amplified Russian Propaganda, Says DOJ

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Some of the most popular right-wing social media personalities were unknowingly involved in a Russian operation to influence the 2024 U.S. election, according to the Department of Justice (DOJ). The DOJ revealed that nearly $10 million had been funneled from Russian state media producers to a Tennessee-based media company known as Tenet Media, which features several high-profile conservative commentators.

These influencers, including figures like Tim Pool, Benny Johnson, Lauren Southern, Tayler Hansen, Matt Christiansen, and Dave Rubin, boast millions of followers on platforms like YouTube. Although none were accused of wrongdoing, they were unwittingly paid by Russian sources to promote content that aligned with the Kremlin’s goals. The DOJ indictment noted that the content pushed by these influencers included criticism of U.S. support for Ukraine, among other divisive topics.

One particularly alarming instance involved Russian state media requesting that Tenet’s founders direct an influencer to blame Ukraine for a terrorist attack in Moscow. These revelations showcase the vulnerabilities of the new media landscape, where creators can be influenced without knowing the source of their funding. Some of the influencers have since acknowledged their involvement and are cooperating with authorities as potential victims of the scheme.

Latino Voting Group Demands DOJ Investigation into Controversial Election Fraud Raids in Texas

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A leading Latino voting organization has called for a federal investigation into recent election fraud raids conducted across Texas under the direction of Attorney General Ken Paxton. The League of United Latin American Citizens (LULAC) has raised concerns about the raids, which targeted notable Democrats and elderly election volunteers. According to LULAC, investigators seized personal devices, including cell phones and computers, and subjected individuals to undue distress.

LULAC’s Lupe Torres has urged the Justice Department to launch a thorough and transparent probe into the circumstances leading to these armed raids. The raids reportedly included the detention of Lydia Martinez, an 80-year-old retired teacher, who was reportedly removed from her home in her nightgown, facing public humiliation. Martinez’s personal belongings and voter registration materials were confiscated, and she was allegedly pressured to reveal her passwords.

LULAC’s CEO, Juan Proaño, condemned the raids as unfounded, asserting that no substantial evidence of voter fraud or harvesting was presented to support the warrants. He highlighted that such allegations are not supported by evidence and criticized the basis of these raids as baseless.

In contrast, Attorney General Paxton defended the raids, citing “sufficient evidence” of election fraud as justification for the search warrants. The investigation stemmed from a county prosecutor’s referral of alleged election fraud and vote harvesting cases to Paxton’s office.

The timing of the raids coincided with Governor Greg Abbott’s announcement regarding the removal of over a million names from the state’s voter rolls since 2021, which included nearly half a million deceased individuals and over 6,500 non-citizens. While Abbott’s office stated that these updates are routine, Proaño argues that the small number of non-citizens among the removed registrants indicates that voter fraud is not widespread.

The Justice Department has acknowledged receipt of LULAC’s letter but has not yet indicated whether it will take further action regarding the matter.