Google AI shakeup: Demis Hassabis shifts roles and Jeff Dean exits

Google’s artificial intelligence division underwent a significant leadership overhaul on Wednesday, with CEO Demis Hassabis stepping down from his operational role at DeepMind to become chair and chief scientist for Alphabet, while longtime chief scientist Jeff Dean exited to co-found a new startup. The changes, announced alongside a sharp decline in Alphabet shares, reflect the tech giant’s evolving strategy in the face of intensifying competition in the AI sector.

Hassabis, who co-founded DeepMind in 2010 and led its integration into Google, will transition to a strategic advisory role, focusing on artificial general intelligence (AGI) and broader research initiatives. His new title as Alphabet’s chief scientist aligns with his long-standing emphasis on foundational AI research, including applications in drug discovery through Isomorphic Labs, the AI-driven subsidiary he founded. Koray Kavukcuoglu, DeepMind’s chief technology officer, will assume day-to-day leadership of the unit, reporting directly to CEO Sundar Pichai. Kavukcuoglu, a 13-year veteran of the organization, will oversee the development of Google’s Gemini model and frontier research efforts.

Dean’s departure marks the end of a 27-year tenure at Google, during which he co-founded the company’s AI research arm, Google Brain, and played a pivotal role in shaping the tech giant’s machine learning infrastructure. Alongside Google fellow Sanjay Ghemawat, Dean is launching Discovery Loop, a public-benefit corporation aimed at automating scientific and engineering experiments. The startup, backed by Alphabet as a founding investor and cloud partner, plans to develop specialized AI tools for research, diverging from Google’s consumer-focused AI frameworks. Dean described the venture as a “different approach” to building infrastructure, emphasizing its focus on scientific discovery over commercial applications.

The leadership shifts coincided with a 5% drop in Alphabet shares, as investors reacted to the departures of two of Google’s most influential AI figures. The stock later recovered some losses but remained under pressure amid concerns about the delayed release of the Gemini 3.5 Pro model and growing competition from rivals like OpenAI and Anthropic. Google’s recent earnings report also highlighted increased capital expenditures, with annual spending projected to rise to $195 billion to $205 billion, up from $180 billion to $190 billion.

The restructuring follows a series of high-profile departures from Google’s AI division, including the exits of Nobel laureate John Jumper to Anthropic and Character.AI co-founder Noam Shazeer to OpenAI. These losses have intensified scrutiny of Google’s ability to maintain its edge in the rapidly evolving AI landscape. Pichai, in a companywide memo, praised Dean and Ghemawat for their contributions to Google’s “transformative” technological advancements, while emphasizing the need to “sharpen focus on the AGI frontier.”

Hassabis’ move to a non-operational role underscores the company’s shift toward long-term research goals, even as it faces immediate pressures to deliver competitive AI products. In a message to staff, he reiterated his belief that “the No.1 application of AI should be to improve human health,” citing Isomorphic Labs’ work on drug discovery as a priority. The delay in Gemini 3.5 Pro’s release, attributed to efforts to enhance coding capabilities, has further fueled speculation about Google’s internal challenges in aligning innovation with market demands.

Discovery Loop’s formation highlights the growing trend of AI talent migrating to independent ventures, driven by a desire to pursue specialized research agendas. The startup’s focus on automating scientific workflows aligns with broader industry efforts to leverage AI for breakthroughs in fields like biotechnology and clean energy. Alphabet’s continued investment in the venture, alongside partnerships with cloud infrastructure providers, suggests a strategic bet on maintaining influence in the AI ecosystem despite the departure of key leaders.

The changes come as Google navigates a pivotal phase in its AI strategy, balancing the need for immediate commercial success with the long-term pursuit of AGI. While the leadership realignment aims to streamline decision-making and refocus resources, the exodus of senior figures raises questions about the company’s ability to retain top talent in an increasingly competitive environment. As Alphabet seeks to redefine its AI priorities, the impact of these shifts on its market position and technological trajectory remains to be seen.