Demis Hassabis just handed off the job he's held since Google swallowed DeepMind. He's stepping back from running DeepMind day to day, moving into a chair role, and taking on a brand-new title: Chief Scientist of Alphabet, focused entirely on the long-term push toward AGI.

His longtime CTO, Koray Kavukcuoglu, now runs Gemini and the rest of DeepMind's research and product teams, reporting straight to Sundar Pichai. It's one of the biggest leadership shuffles at any AI lab this year, and it's happening at the company that's supposed to be racing OpenAI and Anthropic for the lead.

Meanwhile, the Apple-versus-OpenAI story keeps moving. OpenAI filed to have Apple's trade secrets lawsuit thrown out entirely, telling the court it has "no use, need or desire" for Apple's secrets and accusing Apple of using the courtroom to cover for its own slow AI rollout. And in a story that should worry anyone in finance, attackers used AI-cloned voices of real executives to try to trick employees at Point72, Citadel, and Two Sigma into moving money or data.

• Demis Hassabis steps back from running DeepMind to focus on AGI strategy for all of Alphabet.

• OpenAI asks a judge to throw out Apple's entire trade-secrets case.

• AI-cloned executive voices targeted major hedge funds this week.

• Meta launched its own terminal coding agent, Muse Code.

• Defense-manufacturing startup Hadrian just raised $1.37 billion.

• DeepSeek is warning developers to brace for a real price hike.

…and a whole lot more that you can read about below.

Demis Hassabis is stepping back from running DeepMind day to day to become chair of the lab and Alphabet's new Chief Scientist, focused on long-term AGI strategy. Koray Kavukcuoglu, DeepMind's CTO, now runs Gemini and the rest of the lab, reporting to Sundar Pichai. The move lands alongside a second exit: Alphabet's chief scientist Jeff Dean is leaving after 27 years to launch his own AI startup, Discovery Loop, with Google as a founding investor. Alphabet shares dipped about 5% on the news. Why it matters: Google just handed the keys to its most important product to someone new, mid-race against OpenAI and Anthropic.

OpenAI filed a motion to dismiss Apple's trade-secrets case, telling the court it has "no use, need or desire" for Apple's secrets and accusing Apple of using the suit to cover for its own slow AI rollout. Why it matters: it's OpenAI's first real counterpunch since Apple sued in July, and it sets up a bigger fight over what counts as a trade secret in AI hiring.

Meta launched Muse Code, a terminal-based coding agent built on its new Muse Spark 1.2 model, priced at $1.25 per million input tokens and $4.25 per million output tokens. It's live now for Mac and Linux. Why it matters: every major lab now has its own coding agent on the market, piling more pressure on standalone coding tools to prove they're worth paying for.

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Hadrian Raises $1.37 Billion Series D

Defense-manufacturing startup Hadrian closed a $1.37 billion Series D at roughly an $8 billion valuation, about five times where it stood back in January. The company uses AI to automate precision machining for aerospace and defense parts, and the new funding follows an $80 million Army contract and a $900 million Navy commitment earlier this year. Hadrian plans to use the money to scale its factories and expand its software platform, Opus, which helps run the manufacturing floor.

Sequoia Puts $10 Billion Behind "AI Reindustrialization"

Sequoia Capital's new co-leads, Alfred Lin and Pat Grady, are steering roughly $10 billion toward what they're calling AI reindustrialization, anchored by a significantly larger stake in Anthropic than the firm previously held. It's being described as the biggest bet in the firm's 54-year history, and it follows an earlier $7 billion expansion fund the firm raised for the same push.

Klaviyo Buys Elias Torres' AI Startup Agency

Marketing platform Klaviyo is acquiring Agency, the AI customer-success startup founded by serial entrepreneur Elias Torres in 2023, for undisclosed terms. Agency had raised $32 million from Sequoia, Menlo, and Felicis. Torres joins Klaviyo as chief product officer, bringing his 25-person team to fold Agency's AI agents into Klaviyo's existing Composer and Customer Agent products.

SoftBank's Early AI Bets Are Paying Off

SoftBank posted a Q1 net profit of roughly $2.2 billion, well above what analysts expected, largely thanks to a markup on its 2% stake in Intel — bought for about $2 billion, after Intel's shares tripled. Its Vision Fund also gained from a markup on its ByteDance stake, though SoftBank shares still slipped as investors weighed how concentrated the firm's bets on AI have become.

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