The US Justice Department is investigating whether Google violated antitrust laws with its agreement to use artificial intelligence technology from Character.AI, according to people familiar with the matter. Antitrust enforcers are examining if Google structured the deal to avoid formal government merger scrutiny.
In a deal last year, Character.AI’s founders joined Google, and the search giant obtained a non-exclusive license to use their technology. The probe highlights growing regulatory scrutiny of Big Tech’s AI investments.

The investigation comes as the Justice Department increasingly focuses on the tech industry’s use of AI. The agreement between Google and Character.AI has raised questions about potential antitrust violations and whether Google sought to avoid merger review.
The probe is ongoing, and details remain confidential. Google’s deal with Character.AI is under scrutiny for potentially violating antitrust laws.