Google is investing $75 million in movie studio A24 as part of a new AI partnership, but Alphabet shares fell sharply on Monday due to concerns about AI talent departures and competitive pressures.
The deal, announced on Monday, will see Google's AI division DeepMind work with A24 to develop new AI-powered tools and techniques for making and distributing movies.
However, investors were more focused on the loss of top AI talent, including Noam Shazeer and John Jumper, who are leaving Google to join competitors OpenAI and Anthropic.
The departures raised concerns that Google's Gemini AI models may be falling behind competing AI systems, increasing pressure on Alphabet shares and contributing to the stock sell-off.
