Inside Google’s AI Power Shift as Alphabet Reorganises DeepMind
Synopsis
Google is tightening control over its AI operation as competition from Anthropic and OpenAI intensifies, with Sergey Brin pushing teams to focus on Gemini and Demis Hassabis stepping back from day-to-day leadership of DeepMind.
Google AI power shift fuels Koray Kavukcuoglu’s new position at Google DeepMind as the new reporting lines in the gemini system follow the increased competition in the artificial intelligence field at Alphabet.
The Google CTO will oversee the development of Gemini models, AI research, and the Gemini application and developer teams in his new role, and he will report to Google CEO Sundar Pichai.
Hassabis Moves Into a New Role
Demis Hassabis’ day-to-day responsibilities have been cut due to Google AI power shift. Besides, being the chief scientist at Alphabet, he will be focusing more on research activities as the new Google Deepmind chair.
The restructuring sees the absorption of numerous nontechnical departments at DeepMind to Google corporate, and the changes were prompted by the need to scale Gemini at a faster rate after Anthropic and OpenAI made significant progress with their rival large language models.
Google co-founder Sergey Brin has been more involved in AI strategies than ever before.
During the April Brainstorming session, he pushed his subordinates to increase their pace after internal tests caused multiple postponements, including the Gemini launch, according to Reuters.
AI Competition Drives Higher Investment
Competition in artificial intelligence promotes investment in artificial intelligence.
The market’s demand for AI is rising, and according to the 2026 AI Index Report by Stanford University, there was a significant rise in private investment in AI in the US, hitting $285.9 billion in 2025, while in China it was $12.4 billion.
In 2025, the US produces 59 of the noteworthy AI models compared to China’s 35, but the latter leads the pack in AI publications, citations, and grants, the report reveals.
The investment gap is a problem for many private companies, specifically American and Australian firms competing to lead the AI race. Alphabet’s Q2 results show how much the competition for AI dominance means to these companies as it recorded revenues worth $119.8 billion, growing 24% yearly.
Alphabet’s capital expenditure guidance for 2026 has also been increased to $195 billion-$205 billion from $170 billion previously.
These changes better reflect Google’s aggressive infrastructure build to support the AI-driven future fueled by Google Cloud since its Q2 income shows that it is gaining ground rapidly.
The Cloud platform’s revenue was $24.8 billion this quarter, registering 82% growth yearly.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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