Google faces antitrust investigation over acquisition of AI chatbot

according to sources familiar with the matter, the US Department of Justice is investigating whether Google (GOOG.O) has violated antitrust laws by agreeing to use artificial intelligence technology from a popular chatbot manufacturer. Sources said that antitrust enforcement agencies have recently informed Google that they are reviewing whether the deal with Character.AI was structured to evade formal government merger reviews. Under the agreement reached last year, the founder of the chatbot manufacturer joined Google, and Google also obtained a non-exclusive technology license. A Google spokesperson said in an email statement, "We are always happy to respond to inquiries from regulatory agencies. The addition of Character.AI talent is exciting, but Google does not hold equity in the company, which continues to operate independently." Even if the deal does not require formal review, the Department of Justice still has the authority to investigate whether it constitutes anticompetitive behavior. The ongoing investigation is still in its early stages and has not yet made any improper conduct allegations against Google, and may ultimately not take enforcement action.