Google finds itself in hot water yet again. This time the tech giant has run afoul of the Department of Justice (DOJ) for its work with artificial intelligence. The Justice Department is probing whether Alphabet Inc.’s Google violated antitrust law with an agreement to use the artificial intelligence (AI) technology of a popular chatbot maker, according to Bloomberg.
Character.ai is a chatbot platform launched in 2022 by ex-Google engineers Noam Shazeer and Daniel De Freitas. It allows users to create and chat with AI-generated characters, often modeled after fictional or historical personas. Accessible via web and mobile apps, the platform offers customizable personalities, memory retention, and experimental voice features.
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While popular for entertainment and creativity, Character.ai has faced criticism over moderation issues, including AI-generated content promoting self-harm and impersonating real individuals.
In response, the platform introduced safety measures, particularly for teen users such as content filters and dedicated models. In 2025, the company faced a high-profile lawsuit after a teenager allegedly died by suicide following interactions with an AI character. The case raised concerns about AI accountability and content regulation. Despite these controversies, Character.ai remains widely used, with a free tier and a $9.99/month subscription offering enhanced features. It continues to attract scrutiny and legal attention amid its rapid growth.
Antitrust enforcers have recently told Google they’re examining whether it structured an agreement with the company known as Character.ai to avoid formal government merger scrutiny, said the people, who asked not to be identified discussing the confidential probe, Bloomberg reported.
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Yet another antitrust lawsuit by the Justice Department against Google could signal increased scrutiny of how tech giants form partnerships that may skirt antitrust laws. For Alphabet, Google’s parent company, this raises concerns about regulatory risk and potential restrictions on future deals.
If the DOJ finds that Google’s collaboration was meant to avoid formal acquisition oversight, it could lead to legal penalties or forced changes to how such partnerships are handled. This adds to Alphabet’s broader legal challenges and could affect its business strategy, investor confidence, and public perception of how it handles competition and innovation.