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

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Google is reportedly negotiating to acquire talent and license technology from Mechanize, an AI startup specializing in software development, in a deal valued at over $1.5 billion. Founded in 2025 in San Francisco by Tamay Besiroglu, Matthew Barnett and Ege Erdil, the company develops reinforcement learning environments designed to train AI agents capable of automating entire software engineering workflows. This deal structure, described as an acqui-hire plus, would allow Google to obtain both talent and blueprints without necessarily absorbing the entire company. The transaction ranks among the largest AI talent acquisitions in recent memory, highlighting Big Tech’s fierce competition for top expertise in the field.

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