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Alphabet is merging an internal Google Research team called Brain with DeepMind, a move designed to bring two groups focused on artificial intelligence closer together as the battle for AI heats up.

Google acquired DeepMind in 2014 for a reported $500 million and has until now run it as an independent unit out of the U.K. DeepMind has been one of Alphabet’s “other bets,” performing futuristic work, such as teaching computer systems to beat top-ranked players of the Chinese board game Go.

“Combining all this talent into one focused team, backed by the computational resources of Google, will significantly accelerate our progress in AI,” Alphabet CEO Sundar Pichai said in blog post Thursday.

Jeff Dean, who currently leads Google’s AI efforts, will be promoted and given the title of chief scientist at Google, reporting to Pichai. He’ll head up the “most critical and strategic” technical projects related to AI, the first of which will be a series of powerful, multimodal AI models.

The move marks Google’s latest reorganization in response to the rapid developments in AI, following OpenAI’s launch of the chatbot ChatGPT late last year. CNBC previously reported that Google reshuffled its Assistant organization to prioritize the company’s AI chatbot Bard.

“The pace of progress is now faster than ever before,” Pichai wrote. “To ensure the bold and responsible development of general AI, we’re creating a unit that will help us build more capable systems more safely and responsibly.”

DeepMind has been able to operate separately from Google’s core research, enabling it to move quicker on breakthroughs such as AlphaFold, which can predict 3D models of protein structures. The two divisions, DeepMind and Google Research, have also reportedly had tensions in the past, leading DeepMind to seek more independence. 

DeepMind CEO Demis Hassabis will lead the development of “the most capable and responsible general AI systems,” Pichai said. That research, he added, “will help power the next generation of our products and services.” 

Brain, the Google Research team merging with DeepMind, is focused on AI and machine learning. Pichai said Google Research will continue work in areas such as algorithms and theory, privacy and security, quantum computing, health, and responsible Al.

In addition to the blog post, Pichai sent a lengthier memo to staffers about the changes.

James Manyika, Google’s senior vice president of technology and society, will now oversee Google Research, along with his existing teams, Pichai said. Manyika will report to Dean and the changes will take place over the next few weeks, the memo said.

Here’s the text of the memo, which CNBC obtained:

Hi everyone,

We’ve been an Al-first company since 2016 because we see Al as the most significant way to
deliver on our mission. Since then, we’ve used Al to improve many of our core products, from
Search, YouTube and Gmail to the incredible camera in Pixel phones. We’ve helped businesses
and developers harness the power of Al via Google Cloud, and we’ve shown Al’s potential to
address societal issues like health and climate change.

Along the way, we’ve been lucky to have two world-class research teams leading the entire
industry forward with foundational breakthroughs that have ushered in a new era of Al.

The pace of progress is now faster than ever before. To ensure the bold and responsible
development of general Al, we’re creating a unit that will help us build more capable systems
more safely and responsibly.

This group, called Google DeepMind, will bring together part of Google Research (the Brain
team) and DeepMind. Combining all this talent into one focused team, backed by the
computational resources of Google, will significantly accelerate our progress in Al.

As CEO of the new unit, Demis Hassabis will lead the development of our most capable and
responsible general Al systems — research that will help power the next generation of our
products and services. Jeff Dean will take on the elevated role of Google’s Chief Scientist,
reporting to me. In that capacity he’ll serve as Chief Scientist to Google Research and Google
DeepMind. Jeff will help set the future direction of our Al research and head up our most critical
and strategic technical projects related to Al — the first of which will be a series of powerful,
multi-modal Al models.

This move brings together two leading research groups in the Al field. Their collective
accomplishments in Al over the last decade span AlphaGo, Transformers, word2vec, WaveNet,
AlphaFold, sequence to sequence models, distillation, deep reinforcement learning, and
distributed systems and software frameworks like TensorFlow and JAX for expressing, training
and deploying large scale ML models.

Google DeepMind will operate as a nimble, fast-paced unit, with clear points of connection and
collaboration with Google Research and the PAs.

With this change, James Manyika will now oversee Google Research along with his existing
Tech & Society teams. Many of Research’s technological advances have shaped core products
and features across Alphabet and will continue to do so. Working closely with Jeff as Chief
Scientist, Google Research will continue its focus on fundamental and applied research across a
broad portfolio. This means cracking seemingly impossible, foundational and long-term
challenges in computer science — including in Al and ML — that benefit people’s lives around the
world, from algorithms and theory to privacy and security to quantum computing, health,
responsible Al, and more.

We’re announcing these changes today and will take the next few weeks to get the new teams
into place.

Please join me in congratulating Demis, Jeff, and James on their new roles and their continued
collaboration. The Google Research and DeepMind teams have laid the foundation that brought
us to this inflection point.

I’m so excited for the next phase of this journey the progress we’ make against our mission,
and all the ways we’ll help people reach their potential with increasingly capable and responsible
Al.

Sundar

WATCH: Google opens chatbot Bard to users

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

WATCH: Nintendo has ‘a lot of work to do’ to convince casual users to upgrade to Switch 2: Kantan Games

Nintendo has 'a lot of work to do' to convince casual users to upgrade to Switch 2: Kantan Games

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

WATCH: Amazon CEO Andy Jassy says sellers will pass cost of tariffs on to consumers

Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

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