Google is undergoing a major leadership restructuring in AI: Demis Hassabis, co-founder of DeepMind and Nobel laureate in Chemistry, will step down from day-to-day management and assume the role of Chief Scientist at Alphabet. Koray Kavukcuoglu, the new Senior Vice President, will take over operations. Control of Google’s AI business is shifting back from London to Silicon Valley, as co-founder Sergey Brin has re-emerged as an active participant in core decision-making and has become the most influential voice in AI strategy. This leadership transition, coupled with the announcement this same week that veteran AI scientist Jeff Dean is leaving, has raised concerns about Google’s ability to retain top AI talent. The market reacted sharply, with Google’s stock plunging 4% on Wednesday.Article author and source: Wall Street Journal
Google is undergoing a profound restructuring of its AI leadership, with a decade-long "research-driven" culture fully giving way to a focus on commercial monetization.
Wall Street Journal reported that Demis Hassabis, founder of Google DeepMind and Nobel laureate in Chemistry, will step down from his operational role, with day-to-day management handed over to newly appointed Senior Vice President Koray Kavukcuoglu. Hassabis will transition to the roles of Chief Scientist at Alphabet and Chairman of Google DeepMind.
Meanwhile, according to the Financial Times, citing知情人士, control of the company’s AI business is fully shifting back from London, UK (DeepMind’s headquarters) to Silicon Valley, California, with Google co-founder Sergey Brin re-emerging as an active participant in core decision-making and becoming one of the most influential voices in the company’s AI strategy.
This restructuring coincides with the announcement of senior AI scientist Jeff Dean's departure, further fueling doubts about Google's ability to retain top AI talent.
A major power shift, from London back to a desk in Silicon Valley
The most notable change in this restructuring is the position shift of Demis Hassabis, founder of Google DeepMind and recipient of the 2024 Nobel Prize in Chemistry.
Taking over the large model team is the newly appointed Senior Vice President, Koray Kavukcuoglu. The former Chief Technology Officer of DeepMind moved from London to Google’s headquarters in Mountain View, California, last year, and now sits at the desk next to co-founder Sergey Brin, directly leading the development of the core large model, Gemini.
In fact, since the release of ChatGPT, Brin, who had been retired for many years, has returned to the forefront. According to the Financial Times, citing sources familiar with the matter, although he holds no formal executive title, he has become one of the most influential voices in Google’s AI strategy and is deeply involved in Gemini’s development decisions.
The report states that this months-long reorganization marks a complete centralization of Google's AI power. Google is urgently seeking to accelerate the development of its flagship AI models to close the gap with competitors. Google CEO Sundar Pichai said upon announcing the reorganization:
We must accelerate all our efforts and maintain our focus on the forefront of AI. Through today’s adjustments, we will continue to sustain our momentum.Study the conflict between cultural and business needs
Although Hassabis is highly regarded for his scientific leadership, Google executives are reportedly becoming increasingly dissatisfied with his perceived lack of focus on the commercialization needs of the AI business.
One notable point of friction was AlphaFold, the protein structure prediction system that won Hassabis the 2024 Nobel Prize in Chemistry; however, his decision to make it freely available meant the project generated almost no commercial return despite massive investment, sparking internal controversy.
However, a person close to Google disputed the notion of "tension," noting that Hassabis led the initial release of Google’s most advanced AI model, Gemini. Nevertheless, it is undeniable that Google is facing unprecedented external pressure.
Although Google experienced a modest recovery last year with the launch of the Gemini 3 model series and the popular image-editing tool Nano Banana, executives and the board remain deeply concerned. In the fields of code tools and enterprise AI, Anthropic and OpenAI have established early leadership, and Google urgently needs to prove itself in this high-margin market.
For Hassabis himself, stepping back may be a relief. In a statement to employees, Hassabis said that stepping down from day-to-day management would allow him to focus on the "big picture" and influence the direction of increasingly powerful artificial general intelligence (AGI), which he believes is "just around the corner."
Yann LeCun, former chief AI scientist at Meta, understands this, as he himself made a similar transition into a management role in 2018, saying:
Hassabis has his own vision for AI research, and he personally engages in research and inspires others to follow, which is more effective than achieving this vision through managerial directives. You simply want to focus on what you can uniquely do best.Hassabis’s friends also revealed that he felt “relieved and excited” about it, as it allowed him to retain significant influence, avoid the hassle of relocating to the U.S., and free up more time to devote to his AI drug discovery company, Isomorphic Labs.
Risk of talent loss is emerging
This power shift caused major upheaval at DeepMind’s London lab. Several current and former employees said they fear the "pure research culture" that Hassabis had long protected is now coming to an end.
According to the Financial Times, a former DeepMind executive who joined a competitor said they have received calls from several DeepMind employees preparing to "switch companies."
The crisis of talent loss is not limited to London. According to Wall Street Journal, this week, Jeff Dean, a highly respected AI scientist who worked at Google for 27 years, announced his departure.
He will co-found an AI startup called Discovery Loop with three colleagues (the project will receive support from Google).
The capital market responded directly to the turmoil. After the news was released on Wednesday, Google's stock plunged 4% on Wednesday and continued to fall over 1% on Thursday.

Investors are voting with their feet, highlighting concerns about Google’s rising AI development costs and strong anxiety over whether Google can convert its "research capabilities" into "commercially successful products."
Google is undergoing a major leadership restructuring in AI: Demis Hassabis, co-founder of DeepMind and Nobel laureate in Chemistry, will step down from day-to-day management and assume the role of Chief Scientist at Alphabet. Koray Kavukcuoglu, the new Senior Vice President, will take over operations. Control of Google’s AI business is shifting back from London to Silicon Valley, as co-founder Sergey Brin has re-emerged as an active participant in core decision-making and has become the most influential voice in AI strategy. This leadership transition, coupled with the announcement this same week that veteran AI scientist Jeff Dean is leaving, has raised concerns about Google’s ability to retain top AI talent. The market reacted sharply, with Google’s stock plunging 4% on Wednesday.Source: Wall Street Journal
