Google DeepMind hires staff from Contextual AI in licensing deal, Bloomberg News reports
Google DeepMind has secured a licensing deal with AI startup Contextual AI, hiring over 20 researchers including CEO Douwe Kiela and paying approximately $100 million, as part of a trend where major tech firms use such deals to acquire talent without full acquisitions. The move follows similar agreements by Google with Windsurf and Character.AI, raising antitrust concerns as companies seek to avoid regulatory scrutiny through non-acquisition licensing strategies.
Google DeepMind has finalized a licensing agreement with AI startup Contextual AI, acquiring over 20 researchers and paying around $100 million, according to Bloomberg News. Contextual AI’s co-founder and CEO, Douwe Kiela, is among those joining DeepMind. Neither Google nor Contextual responded to Reuters’ requests for comment. This deal marks another instance of a major tech company using licensing agreements to secure talent and technology without a full acquisition. Last year, Google paid $2.4 billion for a non-exclusive license to AI code generation startup Windsurf’s technology while hiring key staff. In 2024, Google also licensed Character.AI’s large language model technology under similar terms. Such arrangements, known as acquihires, allow companies to bypass U.S. antitrust reviews, as they do not involve controlling stakes. In December, Nvidia similarly licensed chip technology from Groq and hired its CEO without acquiring the startup. Antitrust regulators have flagged these tactics as potential attempts to evade merger rules, with Acting Assistant Attorney General Omeed Assefi calling them a ‘red flag’ in March. Contextual AI had previously raised $80 million in a Series A funding round in 2024, led by venture capital firm Greycroft alongside investors like Bain Capital Ventures and Lightspeed. The deal underscores the growing trend of tech giants leveraging licensing to access cutting-edge AI talent and technology while minimizing regulatory hurdles.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.