Google DeepMind Hires Contextual AI Staff in New Deal
Alphabet's AI unit agreed to recruit over 20 researchers from Contextual AI while licensing its technology for approximately $80 million to $90 million. This move follows similar talent-focused licensing agreements recently used by major tech firms to navigate increasing antitrust scrutiny.
ALPHABET INC-CL A subsidiary Google DeepMind will pay $80 million to $90 million to hire more than 20 researchers and license technology from Contextual AI. The deal follows Alphabet's $2.4 billion licensing agreement with Windsurf, which also included hiring several key staff, and a 2024 partnership with Character.AI. Licensing deals, known as "acquihires," allow tech giants to secure talent and technology without triggering formal merger reviews by United States antitrust regulators.
Contextual AI co-founder and CEO Douwe Kiela will join DeepMind as part of the agreement, according to a person familiar with the matter. Google declined to comment on the arrangement. Contextual AI previously raised $80 million in a 2024 Series A round led by Greycroft, Bain Capital Ventures, and Lightspeed.
