Jefferies Defends Alphabet After AI Departures

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Jefferies Defends Alphabet After AI Departures Faizan Farooque Thu, June 25, 2026 at 10:38 AM EDT 1 min read GOOGL GOOG This article first appeared on GuruFocus . Google-parent Alphabet ( NASDAQ:GOOG ) is facing fresh questions about AI talent losses, but Jefferies says the recent departures are noise rather than a real threat to the Google investment thesis. Analyst Brent Thill said Alphabet still has one of the longest AI build histories in the industry and a deep research bench, with about 194,668 employees as of Q1 2026, up 5% year over year. He argued that recent exits should be seen as part of a broader AI talent war, not proof that Google is falling behind. Is GOOG fairly valued? Test your thesis with our free DCF calculator. The comments come after Nobel Prize winner John Jumper left Google DeepMind for Anthropic, while Noam Shazeer moved to OpenAI and DeepMind researcher Lun Wang exited in May. Thill acknowledged that Gemini has tracked more slowly than some frontier AI labs, but said it does not need to be the best model to strengthen Alphabet's broader business. For investors, the point is distribution. Jefferies said Google's reach across Search, Cloud, and Workspace, including 5 apps with 3 billion users, plus its TPU cost advantage, keeps the AI story intact. Thill kept a Buy rating and $445 price target.

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Jefferies views the departure of DeepMind researchers from Alphabet(GOOG) as part of AI talent movement and does not see it as a decisive threat that undermines the investment thesis. Brent Thill emphasized Alphabet's long history of AI development, a workforce of approximately 194,668 employees, broad deployment across Search, Cloud, and Workspace, and a TPU cost advantage as grounds for long-term competitiveness. He did acknowledge that Gemini's development pace is slower than some leading research labs. Jefferies said deployment and infrastructure advantages are more important drivers of earnings and growth, and maintained a Buy rating and a $445 price target.

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