Alphabet-owned Google DeepMind has agreed to hire more than 20 researchers from AI startup Contextual AI and license its technology, according to a source familiar with the matter. The deal, valued at between $80 million and $90 million, includes Contextual's co-founder and CEO Douwe Kiela joining DeepMind.
This marks the latest in a series of similar moves by Google, following a $2.4 billion deal with AI code startup Windsurf last year and a 2024 agreement with Character.AI. Under these arrangements, known as "acquihires," major tech firms pay large sums for talent and technology without formally acquiring the company, bypassing U.S. antitrust review.
Contextual AI raised $80 million in Series A funding in 2024, led by Greycroft and supported by Bain Capital Ventures and Lightspeed.