Alphabet’s stock price briefly fell by 7.2% during intraday trading on June 22, and ultimately closed down 5.08%, at $348.78. The catalyst for this round of sell-off was Google DeepMind vice president John Jumper’s announcement over the weekend that he would be leaving DeepMind to join Anthropic, with Jumper receiving the 2024 Nobel Prize in Chemistry.
Alphabet closes down 5.08% at $348.78
According to market data, Alphabet’s intraday low decline on Monday reached 7.2%, the biggest single-day drop since February. By the close, the stock was down 5.08%, ending at $348.78.
Vital Knowledge newsletter founder Adam Crisafulli wrote in an article on Sunday, saying: “OpenAI and Anthropic are increasingly becoming leading cutting-edge technology companies in the U.S., and they appear to be gradually shedding reliance on model and coding tools from companies like Google, Meta, and xAI.”
He also said Jumper’s departure “does not benefit Google.” Sources from former employees said the timing of Jumper’s exit coincides with Google struggling to sell enterprise AI coding tools.
John Jumper joins Anthropic as Noam Shazeer joins OpenAI
The timeline of the two resignation announcements is as follows:
· Noam Shazeer (Google engineering vice president and co-developer of the Gemini AI model) announced on June 18 that he would be leaving Google to join OpenAI;
· John Jumper (Google DeepMind vice president, co-created AlphaFold with Demis Hassabis, won the 2024 Nobel Prize in Chemistry, and worked at DeepMind for nine years) announced on June 19 that he would join Anthropic. AlphaFold is an AI model that can predict protein structures; it has predicted more than 200 million protein structures, reshaping the landscape of biological research.
Google invests $75 million in A24
According to a June 22 report by The Wall Street Journal, Alphabet’s AI organization DeepMind and independent film company A24 signed a multi-year non-exclusive cooperation agreement. Google also invested $75 million in A24, marking Google’s first acquisition of equity in a film company.
Under the agreement, Google does not have access to A24’s data such as its film and television libraries. A24’s artists will collaborate with DeepMind to incorporate AI into the film creation process. A24 was founded in 2012, with a valuation of $3.5 billion in a 2024 funding round. Recently, it has continued to draw attention through films such as “The Backrooms” and “The Superior Judge.”
Frequently Asked Questions
What is the direct cause of Alphabet’s stock drop this time?
According to reports, the direct cause was that two top AI researchers announced their departures in succession within a week: Noam Shazeer (Gemini co-developer) announced on June 18 that he would join OpenAI, and John Jumper (AlphaFold co-developer and the winner of the 2024 Nobel Prize in Chemistry) announced on June 19 that he would join Anthropic. Vital Knowledge’s Adam Crisafulli said that OpenAI and Anthropic are gradually moving away from reliance on Google tools, and the consecutive loss of high-profile talent further exacerbated the market’s confidence concerns.
What are John Jumper’s main achievements at Google?
According to reports, John Jumper worked at Google DeepMind for nine years. His main achievement was co-creating AlphaFold, an AI system for protein structure prediction, which has predicted more than 200 million protein structures. It is seen as a landmark breakthrough that changed the landscape of biological research and drug development. He and DeepMind CEO Demis Hassabis co-won the 2024 Nobel Prize in Chemistry.
What is the strategic significance of Google’s investment in A24?
According to a Wall Street Journal report, Google’s $75 million investment in A24 was Google’s first acquisition of equity in a film company. The cooperation between DeepMind and A24 does not involve access to A24’s database, but instead enables A24’s artists to collaborate with DeepMind to explore AI applications in the creative process. A24 technology and innovation partner Scott Belsky said this model is intended to “preserve creative control and support an adventurous spirit,” rather than replace filmmakers in a faster, cheaper way.
