Google in a Hurry: AI Core Staff Ordered Back to Silicon Valley, Plus $1.5B Deal for AI Coding Startup

Google is consolidating its AI power structure in Silicon Valley to speed up Gemini development. The company has moved key personnel, including newly appointed Google DeepMind head Koray Kavukcuoglu, to its Mountain View headquarters. This follows a pattern of centralizing decision-making, as the Gemini post-training team is now concentrated at the HQ, and co-founder Sergey Brin is personally monitoring progress. Additionally, Google is in advanced talks to acquire a non-exclusive license to technology from San Francisco-based AI startup Mechanize and hire some of its core employees, with a deal potentially exceeding $1.5 billion. Mechanize was founded by AI researchers Tamay Besiroglu, Matthew Barnett, and Ege Erdil; Besiroglu also founded Epoch AI. Google aims to enhance its AI coding capabilities, which currently lag behind competitors like Claude Code, Codex, and Cursor. The move also involves leadership changes: Demis Hassabis steps down from day-to-day management of Google DeepMind to become Chairman and Chief Scientist at Alphabet, focusing on long-term research and AGI strategy, while Koray Kavukcuoglu takes over operations. The shift reflects Google's belief that key people should be co-located to improve collaboration and speed, rather than relying on remote work across time zones.