Google Acquires DeepMind for £400M, Boosts AI

The acquisition, detailed by Jemima Kiss, was notable due to DeepMind's relative obscurity despite founder Demis Hassabis's reputation for brilliance. Hassabis revealed that discussions with Google spanned two years, triggered by a 4 AM UK time call from Luke Nosek on Elon Musk's private jet, after Musk recommended DeepMind to Google co-founder Larry Page.

DeepMind, which had received $65 million in investment from Musk, maintained secrecy and focused on negotiating terms that allowed it to control its mission, emphasizing a sensory experience approach to AI research, distinct from Google's existing methods. Larry Page reportedly viewed Google as an AI company, indicating the strategic importance of DeepMind's unique research team and approach.

This acquisition fundamentally recalibrates Google's identity, transforming it from primarily an advertiser or search engine into a company that tailors all services using learning technology, exemplified by the Google Now app and future AI-driven customization.