The race for AI coding talent has a new price tag. Google is discussing a roughly $1.5 billion arrangement with Mechanize, a startup that builds testing tools for AI agents, that would license its technology and bring several of its engineers aboard.
The talks, first reported by Business Insider, would give Google a non-exclusive license while adding specialists in model evaluation and development to its ranks. Mechanize was founded last year with a sweeping ambition: AI systems that automate the work of every knowledge worker.
Its current focus is more contained. The company creates simulated virtual environments, evaluation benchmarks and specialized grading systems used to test and train AI agents on business tasks. It has raised $9.1 million from backers that include former GitHub CEO Nat Friedman, Stripe CEO Patrick Collison and podcaster Dwarkesh Patel. CEO Tame Bisoglu previously co-founded the AI research outfit Epoch AI.
Google’s motivation is easy to spot. Its coding agents trail Anthropic’s Claude Code and OpenAI’s Codex in enterprise adoption, and the deal would shore up a weak spot. The structure also suits Google: licensing plus hiring avoids the antitrust scrutiny of a full acquisition, a playbook it used with Windsurf and Character.AI.
The talks underscore how valuable coding has become in AI, and how far big tech will go to secure the people who build it.
