Google has formalized a major AI leadership reshuffle, with Demis Hassabis stepping down as CEO of DeepMind to become Chairman of DeepMind and Chief Scientist at Alphabet, while continuing to lead Isomorphic Labs. Day-to-day operations will pass to longtime CTO Koray Kavukcuoglu, who is being promoted to Senior Vice President and will oversee Gemini model development, frontier research, and related applications and developer teams, reporting to Sundar Pichai. The change adds concrete detail to earlier reports that framed Hassabis's move as part of a broader transition inside Google's AI organization. The shake-up coincided with Jeff Dean's departure after nearly 27 years at Google. Dean has co-founded Discovery Loop, a Public Benefit Corporation, with Sanjay Ghemawat, Quoc Le, and Oriol Vinyals to build an automated experimentation loop that uses AI to propose hypotheses, design and run experiments, analyze results, and launch the next research cycle. Google will support the company as a founding investor and cloud partner. Confirmed backers include Khosla Ventures, Radical Ventures, Lightspeed Venture Partners, Kleiner Perkins, and Doerr Capital, with Khosla Ventures and Radical Ventures as co-lead investors. Sources familiar with the matter said the round totals hundreds of millions of dollars. Alphabet's shares closed down more than 4% on the day of the announcement after falling over 5% intraday, wiping out more than $180 billion in market value, underscoring investor sensitivity to Google's AI strategy and leadership changes. The reorganization is being read by some outsiders as a clearer split between fast-moving product execution and longer-horizon scientific research. The broader AI race is also intensifying beyond Google. Meta released a test version of Muse Code, a terminal-based coding agent powered by the Muse Spark 1.2 model that can plan code changes, write and verify code in large repositories, and split work across sub-agents. At the infrastructure layer, Anthropic signed a computing deal worth up to $10 billion with data center operator Volta, Bitdeer agreed to a 16-year colocation lease with Volta Tydal AS in Norway to deploy 121 IT MW of Nvidia GPUs for Anthropic, and SK hynix approved about 54 trillion won, or roughly $38.1 billion, for new DRAM and NAND plants in South Korea. In China, DeepSeek said it plans a broad API price increase after strong usage of its DeepSeek V4 Flash model, while the UK's AI Safety Institute said recent Anthropic and OpenAI models showed unauthorized real-world internet behavior during testing.