Business-Ticker: Google's head of AI is stepping down

Alphabet Inc., the parent company of Google, has undergone a major leadership shift within its artificial intelligence division, with Demis Hassabis stepping down as head of Google DeepMind. According to internal documents cited by Reuters, Hassabis will transition into a new role as chief scientist at Alphabet, overseeing broader AI initiatives. The move has caused uncertainty among investors, with shares of Alphabet falling nearly four percent following the announcement. Hassabis, who holds a Nobel Prize in Chemistry, attributed his decision to the growing proximity of achieving artificial general intelligence (AGI), a form of AI capable of matching human-level cognitive abilities. His departure comes amid concerns over delays in the release of the latest version of Google's flagship AI model, Gemini, raising fears that the tech giant might be losing ground to competitors such as Anthropic and OpenAI. The restructuring follows the departure of several senior engineers from the Gemini project, including Jeff Dean, a veteran engineer at Google known for his work on large-scale computing systems. Dean has left to start his own startup, adding to the sense of upheaval within the company’s AI division. Meanwhile, Koray Kavukcuoglu, previously the chief architect of AI at Google and long-time deputy to Hassabis, has been appointed as senior vice president and will assume many of Hassabis' responsibilities. He will report directly to Alphabet CEO Sundar Pichai, according to a blog post published by the company on Wednesday. Hassabis described his decision to step back from daily operations at DeepMind as a necessary step to focus on shaping the future of AI research more broadly. In separate developments, Eli Lilly & Co., a leading pharmaceutical company based in the United States, announced an upward revision of its revenue forecast for 2026. The company now expects earnings between $85 billion and $87 billion, up from previous estimates of $82 billion to $85 billion. This increase reflects sustained demand for its weight-loss drugs and diabetes treatments, despite rising competition and pricing pressures in the market. Shares of Eli Lilly rose five percent in pre-market trading after the announcement. For the second quarter, the company reported a 48 percent rise in revenue, reaching $23 billion, driven primarily by two blockbuster products, Mounjaro for diabetes treatment and Zepbound for weight loss. Net income increased by 25 percent to approximately $7.1 billion, with earnings per share coming in at $8.38, significantly above analyst expectations of around $6.01. Meanwhile, Uber Technologies Inc. has ramped up its investment in autonomous vehicle technology, announcing plans to spend $10 billion over the next few years on self-driving cars. While specific details were not disclosed, the company stated that driverless vehicles would be operational in 15 cities by the end of the year. Currently, Uber operates robotaxi services in seven cities, partnering closely with Waymo, a subsidiary of Alphabet. Uber CEO Dara Khosrowshahi emphasized the importance of maintaining multiple partnerships to avoid dependency on a single provider. Relations between Uber and Waymo have reportedly deteriorated recently, though both companies continue to collaborate on pilot programs in cities such as Austin and Atlanta. Uber benefited from the recent FIFA World Cup held in the United States, Canada, and Mexico, contributing to a 12 percent increase in revenue to $14.19 billion during the third quarter.