Business Insider The Google parent saw shares drop after news that DeepMind CEO Demis Hassabis would take on a bigger role and a veteran AI research Jeff Dean is leaving.
- Alphabet stock sold off on Wednesday after an update on the tech firm's AI leadership.
- The stock dropped as much as 6% in afternoon trading.
- The company said DeepMindCEO Demis Hassabis would assume a larger role and another AI vet is leaving.
Investors don't appear to be thrilled with the shakeup in the ranks of Alphabet's top AI minds.
The stock dropped as much as 6% on Wednesday after news broke that DeepMind CEO Demis Hassabis will assume an expanded role at Alphabet. It's a momentous shift for the trajectory of an exec who had recently been tipped a likely contended for Alphabet's next CEO.
The legendary AI researcher and leader of Google's AI efforts will become the chief scientist at Alphabet.
Meanwhile, Jeff Dean, a veteran AI researcher who has been with the tech titan for decades, is departing to start his own company.
Investors balked at the moves, with the stock tumbling around midday as news of the reshuffle broke.
The moves come at a sensitive time for the AI trade, with investors locked into every development among the hyperscalers that could determine their position in the AI arms race.
Alphabet was one of the tech companies that was punished by investors this earnings season for its heightened capex outlook, even as other big spenders like Microsoft and Amazon were rewarded.
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