Google is in talks for 1.5B USD Mechanize coding AI deal

Google has been discussing a deal worth more than 1.5B USD with Mechanize, a San Francisco startup focused on AI coding agents, Business Insider reports.

The proposed transaction is not a straight acquisition. According to the report, Google would hire some Mechanize employees and receive a non-exclusive license to the startup’s technology. One person familiar with the talks said the incoming team would work on model evaluation and development. Google and Mechanize declined to comment to Business Insider, and the deal is still in progress.

The structure matters because AI coding has become one of the fastest-moving battlegrounds in the model race. Google already hired Windsurf’s leadership and licensed its technology after OpenAI’s planned acquisition fell apart, and it previously struck a similar talent-and-license arrangement with Character AI.

Mechanize is a small but closely watched company. It was founded by Tamay Besiroglu, previously a cofounder of Epoch AI, and has said its long-term goal is to automate valuable work across the economy. For Google, the talks point to continued pressure to improve Gemini and Antigravity against OpenAI Codex, Claude Code and other developer-agent products.