Google reportedly in talks for $2B deal with AI coding startup Mechanize

Google is reportedly negotiating a deal to acquire talent and license technology from Mechanize, an AI coding startup, in a transaction valued at over $1.5 billion. The deal would mark one of the largest AI talent acquisitions in recent memory, and it underscores just how aggressively Big Tech is competing for the people and tools building the next generation of autonomous coding agents. Mechanize builds reinforcement learning environments designed to train frontier coding agents. They create the digital gyms where AI models learn to write, debug, and ship software on their own. The company’s long-term ambition is nothing short of full economic automation, starting with software engineering and expanding outward from there. What we know about the deal The reported negotiations center on Google acquiring key talent from Mechanize while also licensing the startup’s underlying technology. This structure, sometimes called an “acqui-hire plus,” sees the buying company get both the brains and the blueprints without necessarily absorbing the entire corporate entity. Mechanize is currently valued between $1.5 billion and $2 billion. The startup was founded in 2025 by Tamay Besiroglu, Matth...