Google is in talks over a deal worth about $1.5 billion with AI coding startup Mechanize. SiliconAngle reported on Aug. 6 that Google is discussing securing a non-exclusive licence to Mechanize's technology and hiring some of its model evaluation and development staff.

Mechanize, founded last year, has a long-term goal of building AI systems that can automate the work of knowledge workers. It is developing a virtual simulation environment, evaluation benchmarks and specialised scoring systems that can test and train AI agents based on various business tasks.

Google is reviewing ways to use the technology to strengthen its AI models, particularly their coding performance. Google's coding agent is seen as lagging behind rival services from Anthropic and OpenAI.

Mechanize raised $9.1 million earlier this year. Investors included former GitHub chief executive Nat Friedman, Stripe chief executive Patrick Collison and podcaster Dwarkesh Patel.

Mechanize is currently focused on software engineering, but it aims in the long term to automate labour that is valuable across the broader economy.

Google has repeatedly pursued deals that combine technology licensing and hiring key talent rather than acquiring AI startups outright. It previously hired key AI engineers from Windsurf and also secured its technology under a licensing arrangement. Former Windsurf chief executive Varun Mohan is now leading development of Google's agentic coding platform, Antigravity.