On Wednesday, August 5th, Google announced a complete overhaul of DeepMind leadership. Demis Hassabis, DeepMind co-founder and former CEO, is no longer involved in day-to-day operations. Jeff Dean, former Google Chief Scientist and Gemini co-lead, is leaving to start a neolab called Discovery Loop, joined by Sanjay Ghemawat, Quoc Le, and Oriol Vinyals. Koray Kavukcuoglu, former DeepMind CTO and the one remaining Gemini co-lead, is replacing Demis as the leader of DeepMind/Gemini. The article states these are not the actions of people excited about Gemini 4 Pro, and that DeepMind is no longer a frontier lab, with odds of reaching SOTA again dropped to zero. The biggest beneficiary is Google Cloud, as Thomas Kurian won the compute allocation fight, with GCP revenue growth expected to meaningfully accelerate. At the end of 2025, Anthropic, OpenAI, and Google were the clear AI big 3, but the downfall of Gemini in 2026 was clear. In November 2025, Gemini 3 Pro was arguably the best model in the world, forcing Sam Altman to issue a “code red” at OpenAI. Since then, the gap has widened dramatically; Gemini 3.5 Flash was a total flop, and Gemini 3.5 Pro is roughly Opus 4.5 level, worse than GLM 5.