"Google's Top Talent Leaves"...Alphabet's Stock Plunges Amid $5.7 Billion Lawsuit Bomb

▲ Alphabet (GOOG·GOOGL), Google, Artificial Intelligence (AI) / AI generated image

Alphabet (GOOG) plummeted over 4% due to the departure of key AI personnel and a class-action lawsuit amounting to $5.7 billion.

According to U.S. economic media outlet Benzinga on August 5 (local time), Alphabet's stock price fell 4.01% to $360.32 during intraday trading. News that a senior scientist who worked at Google for 27 years was leaving the company to establish an artificial intelligence company stimulated selling.

Google's senior scientist, Jeff Dean, will co-found an independent public benefit corporation with Google's senior researcher, Sanjay Ghemawat. The newly established entity will focus on accelerating technological innovation in machine learning, science, and engineering.

Dean and Ghemawat led the construction of Google's core technical infrastructure, from early search systems to neural network research that ushered in the modern AI era. Google will participate as a founding investor and cloud partner in the new entity. A joint research system dealing with machine learning systems and related infrastructure will also be established.

Demis Hassabis, Head of AI, will additionally assume the title of Alphabet Senior Scientist. Hassabis will move from CEO to Chairman of Google DeepMind. On the same day, the UK Competition Appeal Tribunal approved the progression of a class-action lawsuit filed against Alphabet and Google.

The lawsuit alleges that Google used its dominant position in the mobile operating system, app distribution, search, and search advertising markets to charge advertisers higher than market prices. Potential damages were estimated at approximately $5.7 billion. The tribunal rejected Google's objections regarding the lawsuit's structure, costs, and scope of participants, allowing the case to proceed in a manner that includes advertisers who did not explicitly opt out.

[Key Article Summary]

-Alphabet's stock price fell 4.01% during intraday trading on news of Google Senior Scientist Jeff Dean's departure.

-Dean will establish an independent public benefit corporation with Sanjay Ghemawat, focusing on machine learning research.

-The UK court approved the progression of a search advertising class-action lawsuit with potential damages of $5.7 billion.

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