Wednesday, June 24, 2026: Google may have found a new way to turn employee departures into long-term opportunities, with AI incubator.
According to a report by Bloomberg, the tech giant is developing an AI startup incubator exclusively for former Google employees, often referred to as “Xooglers.” Instead of viewing talent departures as a loss, Google appears to be betting that the next generation of AI breakthroughs could come from the very people leaving its offices.
It is a strategy that reflects a growing reality in Silicon Valley: some of the world’s most promising AI startups are being founded by former employees of companies like Google, DeepMind, OpenAI, Anthropic, and xAI. Rather than watching those founders build billion-dollar companies from a distance, Google wants a seat at the table from day one.
The proposed incubator would complement Google’s existing startup initiatives rather than replace them.
The company already operates the AI Futures Fund, a collaboration between the tech giant’s DeepMind and Labs that combines equity investments, typically up to $2 million—with technical support and early access to DeepMind’s AI models. Alongside that, the tech giant initiative for Startups runs accelerator programs that provide mentorship and resources without taking equity.
An incubator focused on former employees would introduce a third pathway, one designed specifically for founders who already understand Google’s technology, research culture, and product ecosystem.
That familiarity could become a major advantage. Unlike first-time founders building relationships from scratch, former employees already know Google’s internal tools, engineering standards, and research teams. This makes collaboration faster, more efficient, and potentially more valuable for both sides.
Google May Fund the Next Generation of AI Startups Built by Xooglers
The move also comes at a time when AI talent has become one of the industry’s most valuable assets.
Since the beginning of 2025, venture capital firms have invested nearly $18.8 billion into AI startups, with much of that funding flowing toward companies founded by alumni of leading AI research labs.
Several high-profile departures have highlighted this trend.
David Silver, one of the key researchers behind DeepMind’s AlphaGo, left to launch Ineffable Intelligence, a startup reportedly valued at around $5.1 billion with backing from Sequoia and Nvidia before releasing significant products. Another group of former DeepMind researchers secured $20 million for Airspeed, while Nobel Prize-winning scientist John Jumper moved from DeepMind to Anthropic, underscoring that top AI talent is increasingly willing to leave established companies for new ventures, or competing labs.
Against this backdrop, the tech giant’s reported incubator appears to be both a defensive and forward-looking strategy.
If talented researchers are likely to leave anyway, becoming their first investor and technology partner could help the tech giant remain closely connected to the innovations they create. It also allows the company to benefit financially from startups that may shape the next wave of AI development.
The initiative also aligns with Google’s broader AI ambitions. DeepMind CEO Demis Hassabis has previously indicated that Google intends to outinvest Microsoft in AI, and supporting former employees through an incubator would extend that strategy beyond infrastructure and models into startup creation itself.
Many details, however, remain unknown. the tech giant has not publicly confirmed the initiative, and information about the incubator’s structure, funding size, investment terms, or launch timeline has yet to be disclosed.
Still, if the reports prove accurate, Google’s latest AI strategy may not be about preventing employees from leaving, it may be about ensuring they never really leave its ecosystem.
