Investors react to leadership change at Google’s AI unit amid concerns over competition with OpenAI and Anthropic.
Alphabet (GOOGL) shares declined after Demis Hassabis stepped down as CEO of DeepMind, its artificial intelligence division. The move fuels concerns that Google is losing ground to rivals OpenAI and Anthropic in next-generation AI development.
Hassabis will transition to a chairman role at DeepMind, while Jeff Dean, a senior AI scientist, is expected to take on a larger leadership role. The shift comes as cloud hyperscalers, including Amazon and Microsoft, report strong earnings, highlighting competitive pressures in AI.
The news follows Amazon’s recent milestone of reaching a $3 Trillion market valuation, driven by robust Q2 performance in cloud services.