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Google is in talks for a $1.5 billion-plus deal with AI coding agent startup Mechanize
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Aug 5, 2026, 8:14 AM ET
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Google wants its AI to get better at coding. It might have found a shortcut.
The tech giant has been in discussions with San Francisco startup Mechanize in recent weeks for a potential deal that would involve Google hiring some of Mechanize's talent, four people familiar with the conversations said.
The deal, which some of the people said is worth over $1.5 billion, is in progress, and details could change. Google is discussing a non-exclusive licensing agreement for Mechanize's technology as part of the deal, one person familiar with the matter said. The talent Google could acquire from Mechanize would work on model evaluation and development, the person added.
The talks highlight two realities of the AI boom. Coding has become one of the most important — and lucrative— applications of AI, and Big Tech companies are getting creative about how they acquire the talent and technology they need to stay competitive.
It wouldn't be the first time Google has done a workaround deal for talent and technology. In the past couple of years, Google has structured acquisitions as hybrid transactions that include bringing in talent via acquihires and gathering technology through licensing and other methods. Companies sometimes take this approach to avoid the antitrust scrutiny of full acquisitions.
Last year, Google swept in to acquire Windsurf's talent and licensed its tech after OpenAI tried to buy it. Windsurf's CEO, Varun Mohan, now leads Google's Antigravity, an agentic coding platform. In 2024, the search giant rehired Character AI cofounder Noam Shazeer and paid for non-exclusive rights to use the startup's AI technology (Shazeer recently left the company to join OpenAI).
Google declined to comment over email. Mechanize declined to comment.
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Mechanize launched last year with a mission of automating every job and a star-studded group of investors, including former GitHub CEO Nat Friedman, Stripe CEO Patrick Collison, and podcaster Dwarkesh Patel.
The startup said earlier this year that it raised $9.1 million in a funding round at a $500 million valuation. Mechanize's CEO, Tamay Besiroglu, previously cofounded Epoch AI, which also focused on testing AI models.
Mechanize's tech can help tech companies improve the performance of their AI models at coding — something Google has struggled with, while OpenAI and Anthropic have scooped up developer customers with Codex and Claude Code.
Mechanize has wider ambitions than coding. "Our current focus is software engineering, but our long-term goal is the full automation of valuable work across the economy," its website reads.
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I'm a senior correspondent at Business Insider, where I cover the tech industry with a focus on venture capital and startups.I can frequently be seen on CNN and other channels providing analysis on a range of business and economic topics. I also appear often at dozens of the biggest events around the world, including the World Economic Forum, HumanX, and Web Summit.Please get in touch if you have a story to tell. For tips (not pitches), you can message me securely on Signal @BenBergman.11Here are some examples of stories I've written:
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Here is a little more about me: Previously, I was a senior reporter at LAist/Southern California Public Radio, where I covered business and economics. I have also written for The New York Times and Columbia Journalism Review and was a reporting intern at The Times. I started my career as a producer for NPR's Morning Edition and also produced award-winning documentaries for public television.I spent the 2017-2018 academic year at Columbia Business School as a Knight-Bagehot fellow. After that, I oversaw the development of The Journal, a daily podcast produced by The Wall Street Journal and Gimlet Media.Originally from Seattle, I graduated cum laude from Occidental College in Los Angeles with a degree in politics.In my free time, I love skiing, tennis, and poker. I competed in the 2024 World Series of Poker Main Event but sadly did not win.
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Hugh is a senior correspondent at Business Insider where he writes about Google, tech, and wealth. His work has been cited by The New York Times, Bloomberg, Reuters, The Wall Street Journal, and other outlets.Get an alert whenever I publish a story.Got a tip? You can reach him using the secure messaging app Signal (hughlangley.01) or email (hlangley@businessinsider.com). We can keep sources anonymous.Some of Hugh's scoops and features:– Google told staff worried about Pentagon AI deals that it's 'leaning more' into national security contracts– Google is building its answer to OpenClaw– Google to let software engineers use AI assistants in job interviews– Larry Page is moving business out of California ahead of wealth tax– Internal document reveals Meta's AI targets– Google pushes more employees to use AI, and not just engineers– Big Tech's AI love fest is getting messy– The secrets of Larry Page's money man– The Goldman prodigy behind Silicon Valley's city of the future– Alphabet's Verily plans to to restructure ahead of fresh investment– How Google found its AI hype guy– 'Godfather of AGI' Ben Goertzel courted Epstein for funding, emails reveal– Inside the family offices of Larry Page and Sergey Brin
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