Alphabet Drops 2.8% on AI Leadership Shakeup

On April 3, 2025, Alphabet's stock experienced a 2.8% drop in pre-market trading.

Alphabet, the parent company of Google, has announced a significant leadership change in its AI division. Sissie Hsiao, who has been leading the AI chatbot project Gemini (formerly known as Bard), will step down from her role. Josh Woodward, the head of Google Labs, will take over her position. This move is seen as a strategic shift to integrate AI resources more effectively within the company.

Hsiao's departure comes as Google aims to focus more on the development of the Gemini application. The company has transferred the Gemini team to its AI research lab, DeepMind, to better compete with rivals like OpenAI. This restructuring is part of Google's broader strategy to enhance its AI capabilities and stay competitive in the rapidly evolving AI landscape.