Alphabet Inc (NASDAQ:GOOG) shares are dropping Wednesday after the company’s longtime chief scientist announced he is leaving to launch an AI startup. Here’s what you need to know.
- Alphabet stock is feeling bearish pressure. What’s pressuring GOOG stock?
Jeff Dean Departs Google After Nearly Three Decades
After 27 years at the company, Jeff Dean is walking away from his role as Google’s chief scientist to co-found an independent public benefit corporation alongside Google Senior Fellow Sanjay Ghemawat, with the new organization dedicated to speeding up breakthroughs in machine learning, science and engineering.
The two have been among the most influential architects of Google’s technical infrastructure, contributing to foundational work spanning early search systems through the neural network research that gave rise to the modern AI era. Google announced it will continue engaging with the new venture as a founding investor and cloud partner while collaborating on a shared research framework covering machine learning systems and related infrastructure advances.
AI chief Demis Hassabis will also take the title of Alphabet’s chief scientist, transitioning from being Google DeepMind CEO to its chairman.
Search Advertising Class Action Adds Pressure
A separate blow came from the UK Competition Appeal Tribunal, which certified a class action lawsuit against Alphabet and its Google entities on an opt-out basis, clearing the path for a claim brought by Or Brook Class Representative Limited to advance on behalf of a wide group of advertisers.
The case centers on allegations that Google exploited dominant positions across mobile operating systems, app distribution, general search and search advertising to force advertisers to pay above-market prices while systematically squeezing out rivals. Brook placed the potential damages in the vicinity of 5 billion euros ($5.7 billion).
Google contested certification across several fronts, raising objections tied to the claimant’s funding structure, the level of costs being sought, the definition of the proposed class and whether the proceedings should proceed on an opt-out or opt-in basis. The tribunal worked through each objection and concluded that none rose to the level of a barrier to certification, finding instead that the overall balance of considerations favored allowing the case to move forward on an opt-out basis.
GOOG Shares Are Declining
GOOG Price Action: Alphabet shares were down 4.01% at $360.32 at the time of publication on Wednesday, according to Benzinga Pro.
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