The field of artificial intelligence is constantly evolving, whether through competitions for new models or coding contests using AI. Currently, the main focus is on AI tools capable of writing code autonomously, creating applications, and performing a significant part of software development. In an effort to stay ahead in this race, Google is preparing to make a major bet on a small AI company founded last year, in 2025.
According to reports, Google is negotiating a deal with the American AI startup Mechanize worth over $1.5 billion, which is equivalent to approximately 13,000 crore Indian rupees. Some sources mention a figure of $2 billion. Notably, despite the startup having only about 35 employees, Google is prepared to allocate such a large sum.
According to available data, this is not a direct acquisition. The report states that Google is interested in licensing the startup's AI technologies as well as attracting several of its engineers to the Google DeepMind division. Thus, what is most valuable to the company is not the product itself, but the AI specialists working at this firm.
Mechanize was founded in 2025 and specializes in AI agents for coding. The company's goal is to create an AI that can independently perform many software engineering tasks, similar to a human. Mechanize's CEO, Tamay Basiroglu, was previously a co-founder of the research organization Epoch AI. To date, the startup has attracted funding of about $9.1 million, and during its last round, its valuation was around $500 million.
Reasons for Google's Interest
The popularity of AI-based coding tools has sharply increased over the past year. Tools such as OpenAI's Codex, Anthropic's Claude, Cursor, and Devin are actively used by developers. Although Google's Gemini also performs coding functions, many developers prefer other platforms. Consequently, Google is striving to significantly improve its coding capabilities.
In recent months, Google has shown high activity in the race for AI talent. Not long ago, the company integrated Windsurf Varun Mohan, CEO, along with co-founder Douglas Chen and several researchers into its DeepMind division. In that deal, Google did not acquire the company entirely but only obtained a license for its technology and joined key engineers.
Acquiring Talent, Not Just Technology
In the AI industry today, the biggest shortage is not of computers or money, but of high-class AI engineers. This is why companies like Meta, Google, OpenAI, Microsoft, and Anthropic are directly attracting talent from small startups. It is often considered simpler and faster to hire engineers than to buy the entire company, which also reduces the likelihood of regulatory scrutiny.
What is an AI Coding Agent?
An AI Coding Agent is a system that does not just offer code suggestions but is capable of writing an entire project autonomously, fixing errors, running tests, and assisting in application creation. It is anticipated that in the future, the majority of software development will be performed by such AI agents. This is why almost all major technology companies worldwide are investing billions of dollars in this technology.
As of now, Google and Mechanize have not made official comments regarding this potential deal. However, if the agreement is reached, it will become one of the largest deals in the AI coding sector.



