Google DeepMind staff morale low, model launch delayed and talent drain worsens

Google DeepMind's AI model launch is delayed due to low employee morale, with its flagship Gemini 3.5 Pro falling months behind schedule. Despite releasing several smaller models recently, market reactions are mixed, and competitors openly mock them.

Talent drain is severe, with top researchers including Gemini co-lead Noam Shazeer leaving for OpenAI and Nobel laureate John Jumper moving to Anthropic. A military deal with the U.S. Department of Defense has also sparked internal discontent, leading to resignations.

Google denies that morale issues are affecting model performance, claiming AI talent attrition is lower than last year and over 90% of job offers are accepted. However, analysts warn that search revenue slightly missed expectations, raising doubts about AI investment returns, and the company's cash flow has turned negative.