Does AIs care about their reputation?

[Magician]

I don't think they do. In my game, some AIs ally and start war with me, then after some fighting, one of them (the one who start the war) agree to sign peace treaty with me, and EVEN a military allliance against it's previous ally!! How come this is possible?? I just give them 30 gold and they agree with this ridicuous statement!! Don't this harm his reputation?

I'm playing Greeks in the middle age.