Google is expanding its AI empire – and losing the people who built it
Tomasz Tunguz, founder of Theory ventures, said it's becoming clear that top-of-the-line models aren't required when it comes to meeting most enterprise demand. "I think we are at that place with AI, particularly for a lot of white-collar work, where many of the models that are reasonable are good enough," Tunguz said. "The next evolution of models are likely to be helpful in domains where you have really fancy computers."Google's full-stack approach to AI is a big reason the stock is up 16% this year after jumping 65% in 2025, when it outpaced all of its megacap peers.
- ▪Tomasz Tunguz, founder of Theory ventures, said it's becoming clear that top-of-the-line models aren't required when it comes to meeting most enterprise demand.
- ▪"I think we are at that place with AI, particularly for a lot of white-collar work, where many of the models that are reasonable are good enough," Tunguz said.
- ▪"The next evolution of models are likely to be helpful in domains where you have really fancy computers."Google's full-stack approach to AI is a big reason the stock is up 16% this year after jumping 65% in 2025, when it outpaced all of its
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| Original publisher | CNBC |
| Canonical URL | https://www.cnbc.com/2026/08/05/google-is-expanding-its-ai-empire-and-losing-the-people-who-built-it.html |
| Publication time | Thu, 06 Aug 2026 10:44:21 +0000 |
| Retrieval time | 2026-08-06T11:00:42.495Z |
| Last seen | 2026-08-06T11:00:42.495Z |
| Headline source | Publisher (no WeSearch rewrite) |
| Excerpt source | publisher body |
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| Summary | WeSearch · cerebras-chat (WeSearch summarizer) |
| Summary source text | contentText |
| Citation coverage | Summary is a WeSearch-generated derivative; primary citation is the original publisher URL. |
| Cluster | GC46BnU1Gujx · 1 stories |
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| Ranking reason | Story pages are not engagement-ranked. Hub feeds use recency, with optional source-diversified chronological ordering (cap consecutive stories per source). No personalized ranking. |
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| Commercial reuse | May the content be reused commercially? | Not permitted |
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Depending on where you sit, Google either has the most enviable position in artificial intelligence or is bleeding top talent to leading AI labs and other startups on the frontline of innovation.It's a contrast that's been on full display over the past two weeks, beginning with the company reporting 82% revenue growth in its cloud division, followed by a shakeup on Wednesday in Google's AI organization, as chief scientist Jeff Dean announced his departure after 27 years.For Google, home to the famous 2017 transformer paper that paved the way for the generative AI boom, the recent events underscore a central challenge facing the $4 trillion company: where to invest.
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