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Sundar Pichai, Google's CEO, has announced a significant restructuring of the company's leadership and operational divisions to accelerate its artificial intelligence (AI) development.
This move is in response to criticisms that the company is lagging behind competitors like Microsoft Corp (NASDAQ:MSFT).
The reorganization will see all AI-related teams, including the development of the Gemini chatbot, consolidated under the DeepMind division led by Demis Hassabis.
This consolidation encompasses research, model development, computing resources, and regulatory compliance teams, the Financial Times reported.
In a communication to employees, later shared in a blog post, Pichai detailed the consolidation of models, research, and responsible AI teams under Google DeepMind, the company's premier AI division.
The move aims to unify efforts on Google's AI models, Gemini and Gemma, by combining resources from Google Research and DeepMind into a single team.
Additionally, Pichai introduced a new unified Platform and Devices team, merging hardware, software, and AI initiatives, including projects like Android, Chrome, search, and photos headed by Rick Osterloh.
Bloomberg reports that the restructuring also includes the formation of a central Trust and Safety team dedicated to the rigorous testing and evaluation of AI systems.
This shakeup aims to streamline Google's structure, enhance its product innovation pace, and facilitate quicker decision-making processes.
Hiroshi Lockheimer will transition from overseeing Android to focusing on new projects, with Sameer Samat replacing him.
This overhaul marks the most significant changes at Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Google's parent company, since integrating its DeepMind and Google Brain AI units the previous year. It signifies a considerable expansion of Hassabis's influence over Google's AI endeavors.
Google seeks to overcome recent challenges, notably the controversy surrounding Gemini's image generation.
It led to criticisms of its AI capabilities compared to rivals like OpenAI, Meta Platforms Inc (NASDAQ:META), and Anthropic.
Analysts have flagged Alphabet's strategic investments in cloud, hardware, and AI as key drivers for its multi-year growth. These investments counter the narratives around competitive threats, underscoring Google's strong foundation in its core businesses.
Alphabet's focus on AI and the continued evolution of CTV will foster a positive reassessment of its shares.
Analysts also highlighted the potential collaboration between Apple Inc (NASDAQ:AAPL) and Google could significantly enhance iOS features by incorporating advanced Gen-AI capabilities, including a more sophisticated version of Siri and new AI services like chatbots and image generators.
GOOGL stock gained 50% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF (NYSE:VOX) and IShares Global Comm Services ETF (NYSE:IXP).
Price Action: GOOGL shares closed higher by 0.35% at $156.01 on Thursday.
Also Read: Amazon Analyst Predicts Lead in AI Revolution with Strategic Cost Efficiency and Tech Innovations
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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