Alphabet shares fell as much as 6% after Google announced a major shake-up of its AI leadership, raising investor concerns about the company's AI strategy.
The restructuring gives DeepMind CEO Demis Hassabis a broader role as Alphabet’s Chief Scientist, allowing him to focus on the company’s long-term AI direction while stepping away from day-to-day management of DeepMind. Koray Kavukcuoglu, DeepMind’s chief technology officer, will take over operational leadership.
At the same time, veteran Google AI researchers Jeff Dean and Sanjay Ghemawat are leaving to launch a new startup focused on machine learning, science, and engineering.
The leadership changes come as competition in AI continues to intensify. Google faces growing pressure from rivals OpenAI and Anthropic, which have attracted several former Google AI researchers and gained momentum with their AI coding tools.
Investors reacted negatively to the announcement, sending Alphabet shares down as much as 6% during trading before closing about 4% lower.
The reshuffle also follows increased scrutiny of Alphabet’s AI investments after the company projected higher capital spending than expected, adding to concerns about its position in the AI race.