Google announced a major reshuffle in its AI divisions, with chief scientist Jeff Dean leaving after 27 years to start his own company, supported by Google. Demis Hassabis, CEO of Google DeepMind, will transition to a chairman role while also becoming Alphabet's chief scientist.
This leadership change comes as Google faces increasing competition from firms like OpenAI and Anthropic, particularly in developing advanced AI models. Following the announcement, Alphabet's shares dropped approximately 4%.
The company is also grappling with financial pressures, having reported negative cash flow for the first time due to high capital expenditures, which are projected to reach up to $205 billion for the year. Koray Kavukcuoglu has been promoted to lead the AI division and will oversee the development of the upcoming Gemini 4 AI model, reporting directly to CEO Sundar Pichai.
This restructuring reflects Google's strategic response to the dynamic AI market and its commitment to maintaining leadership in the sector