AI

Google Consolidates AI Leadership in California to Race Anthropic and OpenAI

Google is concentrating its AI leadership in Mountain View to compete with Anthropic and OpenAI, appointing Koray Kavukcuoglu to run research and operations while Demis Hassabis becomes DeepMind chairman, Bloomberg reported on August 6.

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By Sarah Chen Senior AI Reporter
August 6, 2026 / Updated August 19, 2026 / 5 min read

Google is concentrating its artificial intelligence leadership at its Mountain View, California, headquarters to gain momentum in the race against Anthropic and OpenAI to build the world's dominant AI models, Bloomberg reported on August 6. The company appointed Koray Kavukcuoglu, who moved to Mountain View this year, to run its sprawling AI research and operations.

Hassabis Steps Back From Day-to-Day Operations

Demis Hassabis, DeepMind's co-founder and long-time chief executive, has stepped back from day-to-day operations to become chairman of Google DeepMind and Alphabet's Chief Scientist, according to the report. Sebastian Borgeaud, who led a key AI coding effort, also relocated from Britain to California, while other London staff have departed outright.

A $205 Billion Bet on Catching Up

Kavukcuoglu is taking over as Google is months behind schedule on the most powerful version of its flagship Gemini model, with many viewing its products as an afterthought in coding automation — one of the most lucrative early AI markets. Google has pledged to spend as much as $205 billion on capital expenditures in 2026 alone to support its AI ambitions, according to Bloomberg. The leadership churn follows a wave of departures, including legendary engineer Jeff Dean, who left to launch a startup.

Google said London remains an important hub for its AI talent and ambitions, and the company recently unveiled a new office there where Hassabis will focus on AI vision and strategy.

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