Google restructures AI division as Demis Hassabis assumes new role

On August 5, 2026, Alphabet announced a major restructuring of its artificial intelligence division, marking a shift in leadership for Google DeepMind. Demis Hassabis, the Nobel laureate and co-founder of DeepMind, is stepping down as CEO to become the president of Google DeepMind and the inaugural chief scientist of Alphabet. He will retain leadership of the drug-discovery subsidiary Isomorphic Labs, while Koray Kavukcuoglu, formerly the chief technology officer and chief AI architect, takes over as senior vice president to manage the daily operations of Google DeepMind under the oversight of Alphabet and Google CEO Sundar Pichai.

Simultaneously, the company faces significant departures, including veteran engineer Jeff Dean and other key staff involved in the Gemini model, who are leaving to launch a new startup named Discovery Loop. The startup aims to automate research for machine learning development. This reorganization occurs as Google grapples with internal pressure to accelerate its AI progress, particularly as the highly anticipated latest version of Gemini missed its June release target. Following the announcement, Alphabet shares declined by approximately 4%, reflecting market concerns over leadership changes and the intense competition from rivals such as OpenAI, Anthropic, and Meta.