Ruth Porat, chief financial officer of Alphabet Inc., speaks during a news conference at Michigan Central Station in Detroit, Michigan, on Friday, Feb. 4, 2022.
Jeff Kowalsky | Bloomberg | Getty Images
A string of Google executives have changed their roles in the span of several months, in a shift that has sidelined many of company’s remaining old guard.
The changes encompass high-profile executives such as finance chief Ruth Porat, YouTube CEO Susan Wojcicki and employee No. 8, Urs Hölzle, among others. Some say they have left their roles for a new challenge and others have left to seek opportunities in artificial intelligence.
In February, Wojcicki — one of the most prominent women in Silicon Valley — announced that she was stepping back after nine years at the helm of the Google-owned platform that grew to be the world’s most popular video service. She had been at Google for more than 25 years, after famously lending her garage to Google founders Sergey Brin and Larry Page to use as their first office.
While she’ll still be in an advisory role at Google, she said she wanted to “start a new chapter.”
Wojcicki wasn’t the only executive to leave YouTube. Robert Kyncl, the chief business officer for 12 years, stepped away to become CEO of Warner Music Group at the beginning of the year.
In March, CapitalG founder and longtime Google employee David Lawee stepped down from his role after 17 years at Alphabet, saying he wanted to explore new areas of interest and spend more time with his family.
Hölzle, who has long overseen Google’s technical infrastructure and was its eighth employee, said he would be stepping back from management after 24 years of leading technical teams, CNBC reported in July. Hölzle will be classified as an “individual contributor,” which means he will be working independently and no longer managing employees.
Also in July, Porat announced that she will step down as Alphabet‘s chief financial officer after eight years and take a new role as president and chief investment officer. When asked about the timing of the move, Porat, who was previously Morgan Stanley‘s CFO, said she wanted to take on a different set of challenges.
Porat will also be engaged with policymakers to “recognize the importance of technology” and on issues including employment, economic, competitiveness and infrastructure expansion,” the company said.
“We have a steady and experienced leadership team, many of whom have been with the company for well over a decade, ” said Google spokesperson Courtenay Mencini in statement about the shifts. “We also have a strong bench of leaders at Google who can smoothly transition when people who’ve had long and successful careers here decide to pursue new opportunities inside and outside the company.”
Searching for itself in an AI-first world
As Google looks for replacements for executives like Porat, it’s also searching for its own identity in a pivotal moment in the company’s history.
The company was caught flat-footed last fall when OpenAI launched its AI-powered chatbot ChatGPT, and suddenly found itself in a rare spot where its core search business was threatened.
Industry observers wondered if users could simply get answers from an AI-powered chatbot, how long would they keep entering queries into a search engine? It was an ironic moment for the search giant, given that CEO Sundar Pichai had been talking up the company’s “AI-first” strategy since 2016, with little to show externally.
In June, Google execs admitted to employees that users are “still not quite happy” with the search experience, CNBC reported. Search boss Prabhakar Raghavan and engineering VP HJ Kim spent several minutes pledging to do a better job to employees while Pichai noted that it’s still the most trusted search engine.
Geoffrey Hinton, known as “The godfather of AI” and one of the most respected voices in the field, told The New York Times in May that he was leaving the company after a decade to warn the world about the potential threat of AI, which he said is coming sooner than he previously thought.
Shortly before that, amid a reorganization in Google’s AI teams, the company promoted the CEO of its DeepMind subsidiary, Demis Hassabis, to lead AI for the entire company, and former McKinsey exec James Manyika to become Google’s senior vice president of technology and society and to oversee Google Research.
Google’s AI head, Jeff Dean, who’s been at the company since 1999, became a chief scientist as part of the change. The company called it a promotion, but it effectively took him out of a large leading role in AI to be an individual contributor, reportedly helping oversee Gemini, one of its critical large language models.
The company is also cutting costs, another rarity, while the core search product faces changing user behavior, ad pullbacks and an AI boom that requires increasing investment, all amid a slowing economy and investor calls to reduce spending.
It’s also staring down multiple federal lawsuits, including an imminent antitrust trial set to begin in September that alleges Google illegally maintained a monopoly by cutting off rivals from search distribution channels.
More like other big companies, some employees say
Employees’ perceptions of the company have also changed in recent years.
While potential employees still consider Google a top place to work with extremely competitive perks, it has grown to be more bureaucratic than in its earlier days.
This perception shift has created a “fragile moment” for Google amid the pressure from OpenAI and Microsoft, argued former Google employee Praveen Seshadri in a Medium post that went viral earlier this year.
“I have left Google understanding how a once-great company has slowly ceased to function,” wrote Seshadri in his blog post that detailed the challenges of Google’s growing bureaucracy.
“Like mice, they are trapped in a maze of approvals, launch processes, legal reviews, performance reviews, exec reviews, documents, meetings, bug reports, triage, OKRs, H1 plans followed by H2 plans, all-hands summits, and inevitable reorgs.”
Former Waze CEO Noam Bardin, who quit Google in 2021, shared Seshadri’s post on LinkedIn. In a blog post a couple years earlier, Bardin had written that employees aren’t incentivized to build Google products.
“The problem was me — believing I can keep the startup magic within a corporation, in spite of all the evidence showing the opposite,” he wrote in his critique of the company.
Like Seshadri and Bardin, a number of AI specialists have left the company, saying it had grown too bureaucratic to get things done.
Eight AI researchers who created “Transformers,” an integral part of the infrastructure behind ChatGPT and other chatbots, have left the search giant since 2017 — many of them going on to start their own companies. Five of them left in 2021 alone.
Llion Jones, who departed Google this month to start his own company focused on AI, told CNBC’s Jordan Novet, “the bureaucracy had built to the point where I just felt like I couldn’t get anything done.”
Other AI researchers at Google have made similar complaints in recent months. Several have gone on to start their own companies focused on AI, where they have more agency over vision and speed.
In February, longtime product exec Clay Bavor said after 18 “wonderful years” at Google, he was leaving to start an artificial intelligence company with former Salesforce co-CEO Bret Taylor. “We share an obsession with recent advances in AI, and we’re excited to build a new company to apply AI to solve some of the most important problems in business,” Bavor wrote at the time.
“We’ve made intentional efforts throughout the year to move quickly with nimble teams,” said Google spokesperson Courtenay Mencini. “For instance, products like Bard and SGE [Search Generative Experience] are being developed by small, fast-moving teams that have been built for these high-priority efforts.”
Despite its efforts, the company faced criticism from investors and its own employees when it quickly tried to announce its ChatGPT competitor Bard, which it started opening up to the wider public in March. While the rollout’s reputation has rebounded after several updates and a successful developer conference, the company still has yet to launch SGE to the wider public.
The company has also become less flexible as it strives to get employees back into the office.
Google recently cracked down on its hybrid three-day-a-week office policy to include badge tracking, and noted attendance will be included in performance reviews, CNBC previously reported. Additionally, employees who already received approval for remote work may now have that status reevaluated.
There’s also a new emphasis on cost-cutting that has taken some employees by surprise.
Even if the company had been considered slower moving, at least it had been considered secure — commonly known as a place where employees could “rest and vest.” That changed with the company’s first-ever mass layoffs in January, where Alphabet abruptly announced it was eliminating about 12,000 jobs, or 6% of its workforce, in an overnight email. Some employees reportedly arrived at work to discover their badges no longer worked. It then declined to pay out the remainder of employees’ approved leave time.
While the company included competitive severance packages, some employees lost trust in leadership, who had long encouraged employees to be kind, humble and open-minded, or “Googley.”
The company has also reduced spending on real estate, even asking employees in its cloud unit to share desks. It’s also cut down on desktop PCs and equipment refreshes for employees. It started cutting travel and events late last year.
In an all-hands meeting last September, employees voted to ask Pichai why the company is “nickel-and-diming employees” with some of its cutbacks on perks and travel.
Google’s culture can still be enjoyable even if some things, like certain swag items, are getting taken away, the CEO argued.
“I remember when Google was small and scrappy,” Pichai said. “We shouldn’t always equate fun with money. I think you can walk into a hardworking startup and people may be having fun and it shouldn’t always equate to money.”
Pichai’s statement touched a nerve. Yes, many people joined Google so their work would immediately have an impact of many more users than other companies. It’s still considered one of the top places to work, with opportunities to tackle some of the industry’s biggest problems. But, alongside all that, money and perks had flowed generously, regardless of the speed at which projects moved.
Now, the company faces its biggest challenge yet, which falls on the shoulders of Pichai and the next guard — trying to recreate the magic of its early days along with delivering revenue while being under more pressure than ever.
The S & P 500 ran into a brick wall Friday and finished the week lower, just one day after closing at a record high. The rotation out of tech stocks, which supported the Dow , was on full display. The across-the-board rally on Wednesday after the Federal Reserve cut interest rates for the third time this year was long forgotten. .SPX .IXIC,.DJI 5D mountain S & P 500, Nasdaq and Dow last week For the week, the broad-market S & P 500 lost roughly 0.6%, while the tech-heavy Nasdaq fell 1.6%, breaking a two-week win streak. The sector shuffle that made materials, financials, and industrials weekly winners — and communications services and information technology weekly losers — pushed the Dow 1% higher last week, its third consecutive weekly gain. Despite December historically being a strong month, the S & P 500 and Nasdaq are down 0.3% and 0.7%, respectively. The Dow is up nearly 1.6%. Perhaps the big man will bail out Wall Street. The so-called Santa Claus rally , a seasonal pattern that occurs in the final five trading days of the year and the first two of the new year, would begin on Dec. 19. Until then, here are four significant moments that drove the market last week. 1. Broad(com) worries Friday’s market was slammed by tech selling, led by Broadcom ‘s 11.5% plunge. The chipmaker’s quarterly beat and raise on Thursday were overshadowed by misinterpreted remarks from management during the earnings call. The Broadcom hit stoked AI-stock valuation worries that have been simmering. During the sell-off on Friday morning, Jim Cramer said the custom chipmaker’s business was “on fire,” and that the decline could be a buying opportunity. Broadcom was our worst performer of the week, followed by Meta Platforms and Nvidia . 2. Tarnished Oracle The second session sell-off of Oracle on Friday didn’t help. The stock was crushed nearly 11% on Thursday following a quarterly sales miss, a disappointing guidance update, and an increased spending outlook. The magnitude of the stock decline was compounded by what management did not address on Wednesday evening’s conference call: OpenAI’s ability to fulfill its massive commitments to purchase AI computing power from Oracle. On Friday, shares sank another 4.5% after Bloomberg reported that Oracle was pushing back the completion dates for some data centers it is completing for OpenAI. Oracle pushed back , asserting “all milestones remain on track.” 3. Nvidia gets China OK While Nvidia caught shrapnel from AI trade worries, the all-purpose artificial intelligence chip king received long-awaited good news last week. After Monday’s close, President Donald Trump said on social media that Nvidia will be allowed to ship its second-best H200 chips to “approved customers in China,” and the U.S. government would take a 25% cut. Nvidia reached a deal in August with the U.S. government to provide 15% of made-for-China, throttled-down H20 sales in exchange for export licenses. It turns out China did not want the H20s. The question of whether China will want H200s was debated all week. 4. Powerful guidance On the industrial side of the AI trade, GE Vernova was our top performer despite Friday’s 4.6% decline. The energy equipment company, whose products and services help power AI data centers, closed at a record high Wednesday on incredibly positive guidance all the way out to fiscal 2028. CEO Scott Strazik, on CNBC, amplified the compelling near- and long-term growth story that management outlined at Tuesday evening’s investor meeting. On Wednesday, we raised our GE Vernova price target to $800 per share from $700, and reiterated our buy-equivalent 1 rating. The Honeywell spinoff, Solstice Advanced Materials , and Dover were also weekly winners. (Jim Cramer’s Charitable Trust is long AVOG, META, NVDA, GEV, SOLS, DOV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Oracle CEO Clay Magouyrk appears on a media tour of the Stargate AI data center in Abilene, Texas, on Sept. 23, 2025.
Kyle Grillot | Bloomberg | Getty Images
Oracle on Friday pushed back against a report that said the company will complete data centers for OpenAI, one of its major customers, in 2028, rather than 2027.
The delay is due to a shortage of labor and materials, according to the Friday report from Bloomberg, which cited unnamed people. Oracle shares fell to a session low of $185.98, down 6.5% from Thursday’s close.
“Site selection and delivery timelines were established in close coordination with OpenAI following execution of the agreement and were jointly agreed,” an Oracle spokesperson said in an email to CNBC. “There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track.”
The Oracle spokesperson did not specify a timeline for turning on cloud computing infrastructure for OpenAI. In September, OpenAI said it had a partnership with Oracle worth more than $300 billion over the next five years.
“We have a good relationship with OpenAI,” Clay Magouyrk, one of Oracle’s two newly appointed CEOs, said at an October analyst meeting.
Doing business with OpenAI is relatively new to 48-year-old Oracle. Historically, Oracle grew through sales of its database software and business applications. Its cloud infrastructure business now contributes over one-fourth of revenue, although Oracle remains a smaller hyperscaler than Amazon, Microsoft and Google.
OpenAI has also made commitments to other companies as it looks to meet expected capacity needs.
In September, Nvidia said it had signed a letter of intent with OpenAI to deploy at least 10 gigawatts of Nvidia equipment for the San Francisco artificial intelligence startup. The first phase of that project is expected in the second half of 2026.
Nvidia and OpenAI said in a September statement that they “look forward to finalizing the details of this new phase of strategic partnership in the coming weeks.”
But no announcement has come yet.
In a November filing, Nvidia said “there is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity.”
OpenAI has historically relied on Nvidia graphics processing units to operate ChatGPT and other products, and now it’s also looking at designing custom chips in a collaboration with Broadcom.
On Thursday, Broadcom CEO Hock Tan laid out a timeline for the OpenAI work, which was announced in October. Broadcom and OpenAI said they had signed a term sheet.
“It’s more like 2027, 2028, 2029, 10 gigawatts, that was the OpenAI discussion,” Tan said on Broadcom’s earnings call. “And that’s, I call it, an agreement, an alignment of where we’re headed with respect to a very respected and valued customer, OpenAI. But we do not expect much in 2026.”
“This is the wrong approach — and most likely illegal,” Sen. Amy Klobuchar, D-Minn., said in a post on X Thursday.
“We need a strong federal safety standard, but we should not remove the few protections Americans currently have from the downsides of AI,” Klobuchar said.
Trump’s executive order directs Attorney General Pam Bondi to create a task force to challenge state laws regulating AI.
The Commerce Department was also directed to identify “onerous” state regulations aimed at AI.
The order is a win for tech companies such as OpenAI and Google and the venture firm Andreessen Horowitz, which have all lobbied against state regulations they view as burdensome.
It follows a push by some Republicans in Congress to impose a moratorium on state AI laws. A recent plan to tack on that moratorium to the National Defense Authorization Act was scuttled.
Collin McCune, head of government affairs at Andreessen Horowitz, celebrated Trump’s order, calling it “an important first step” to boost American competition and innovation. But McCune urged Congress to codify a national AI framework.
“States have an important role in addressing harms and protecting people, but they can’t provide the long-term clarity or national direction that only Congress can deliver,” McCune said in a statement.
Sriram Krishnan, a White House AI advisor and former general partner at Andreessen Horowitz, during an interview Friday on CNBC’s “Squawk Box,” said that Trump is was looking to partner with Congress to pass such legislation.
“The White House is now taking a firm stance where we want to push back on ‘doomer’ laws that exist in a bunch of states around the country,” Krishnan said.
He also said that the goal of the executive order is to give the White House tools to go after state laws that it believes make America less competitive, such as recently passed legislation in Democratic-led states like California and Colorado.
The White House will not use the executive order to target state laws that protect the safety of children, Krishnan said.
Robert Weissman, co-president of the consumer advocacy group Public Citizen, called Trump’s order “mostly bluster” and said the president “cannot unilaterally preempt state law.”
“We expect the EO to be challenged in court and defeated,” Weissman said in a statement. “In the meantime, states should continue their efforts to protect their residents from the mounting dangers of unregulated AI.”
Weissman said about the order, “This reward to Big Tech is a disgraceful invitation to reckless behavior by the world’s largest corporations and a complete override of the federalist principles that Trump and MAGA claim to venerate.”
In the short term, the order could affect a handful of states that have already passed legislation targeting AI. The order says that states whose laws are considered onerous could lose federal funding.
One Colorado law, set to take effect in June, will require AI developers to protect consumers from reasonably foreseeable risks of algorithmic discrimination.
Some say Trump’s order will have no real impact on that law or other state regulations.
“I’m pretty much ignoring it, because an executive order cannot tell a state what to do,” said Colorado state Rep. Brianna Titone, a Democrat who co-sponsored the anti-discrimination law.
In California, Gov. Gavin Newsom recently signed a law that, starting in January, will require major AI companies to publicly disclose their safety protocols.
That law’s author, state Sen. Scott Wiener, said that Trump’s stated goal of having the United States dominate the AI sector is undercut by his recent moves.
“Of course, he just authorized chip sales to China & Saudi Arabia: the exact opposite of ensuring U.S. dominance,” Wiener wrote in an X post on Thursday night. The Bay Area Democrat is seeking to succeed Speaker-emerita Nancy Pelosi in the U.S. House of Representatives.
Trump on Monday said he will Nvidia to sell its advanced H200 chips to “approved customers” in China, provided that U.S. gets a 25% cut of revenues.