The restructuring of DeepMind, as reported by Reuters, is linked to delays in the next-generation Gemini model from Alphabet. Internal sources indicate the launch of Gemini has been pushed back by roughly two months. Furthermore, internal testing reveals the model still lags behind competitors in critical areas like coding, prompting a need for further development adjustments.

This delay has also highlighted longstanding organizational problems within Alphabet's AI division. Seven sources cited by Reuters note that the Gemini development team had multiple project leads, leading to disagreements over development priorities and resource allocation, and even internal conflicts. Meanwhile, Alphabet faces constraints on the computing power available for AI model training. Sources say that the combination of computing limitations and internal coordination issues meant that key areas like coding, which later became a competitive focus, initially lacked sufficient resources. While Gemini briefly caught up to competitors last November with the release of Gemini 3, which reached frontier model levels, subsequent new versions from Anthropic and OpenAI have pushed it back into a catch-up position. Reuters reports that Alphabet's internal approval and management processes have also slowed model releases. Four sources say these persistent organizational and resource issues make it difficult for Alphabet to iterate models as quickly as some rivals.

The major restructuring of DeepMind was announced on August 5th. DeepMind head Demis Hassabis has transitioned to a chairman role, reducing his daily management duties, while his deputy Koray Kavukcuoglu has taken over primary management. At the same time, the two original technical co-leads of Gemini, Jeff Dean and Oriol Vinyals, have left to co-found a new company. Some teams will also be transferred from DeepMind into Alphabet's corporate structure. Prior to this adjustment, Alphabet CEO Sundar Pichai had appointed Kavukcuoglu as the company's chief AI architect in 2025, tasked with integrating Gemini into Alphabet's products. Sources say that since then, the influence of some DeepMind leaders on the Gemini direction has waned. Kavukcuoglu is also currently responsible for coordinating the relationship between DeepMind and Alphabet Cloud. Due to Alphabet's limited supply of its AI chips, TPUs, the cloud division and DeepMind had previously clashed over computing resource allocation, and management hopes the personnel changes will ease these tensions.

Alphabet co-founder Sergey Brin has also recently intensified his focus on AI work. Two sources say Brin urged DeepMind to speed up development at an internal all-hands meeting in April. One source added that Brin has pushed for more resources to be directed into research areas like "recursive self-improvement," which involves enabling AI systems to enhance their own capabilities with less human intervention. Following this management overhaul, Hassabis will focus more on long-term issues related to AI's role in advancing science and society. Kavukcuoglu will continue to oversee Gemini model development and will hold final authority on key DeepMind decisions. While Alphabet management is trying to stabilize employee morale, the restructuring has also raised concerns about a further erosion of DeepMind's independence. Some employees worry that as more teams are integrated into Alphabet, DeepMind's historically independent research model will be increasingly influenced by commercial goals.