Eric Schmidt is to reqlinquish his position as executive chairman of Alphabet, Google's holding company, and to shift to an advisory role - technical advisor to the board, on which he will continue to sit.
The changes will take effect from Google's next regular board meeting in January.
"Since 2001, Eric has provided us with business and engineering expertise and a clear vision about the future of technology," said Alphabet co-founder and CEO Larry Page.
"Continuing his 17 years of service to the company, he'll now be helping us as a technical advisor on science and technology issues."
Schmidt revealed that he, Larry, Sergey and Sundar agreed the move as in the best interests of the company and its evolution, adding that the Alphabet structure is working well, and that Google and its ancilliary activities "are thriving".
He continued: "In recent years, I've been spending a lot of my time on science and technology issues, and philanthropy, and I plan to expand that work."
Google is hoping that Schmidt's move should enable him to bring the same focus and energy he brought to Google to his other interests, while continuing to advise Alphabet.
The tech giant will appoint a new non-executive chairman to replace Schmidt in the near future.
Schmidt is, perhaps, best known for talking down some of the hype and fear-mongering around artificial intelligence from the likes of renowned physicist Stephen Hawking and entrepreneur Elon Musk.
Last year, he basically accused both men of not knowing what they're talking about.
Asked about the duo's AI opinions during the 'Brilliant Minds' conference in Stockholm, Sweden, he said: "In the case of Stephen Hawking, although a brilliant man, he's not a computer scientist.
"Elon [Musk] is also a brilliant man, though he too is a physicist, not a computer scientist."
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