Morphogen-induced decline in G i␣ triggers F9 teratocarcinoma stem cells to progress to primitive endoderm via activation of protein kinase C and mitogen-activated protein kinase (Gao, P., and Malbon, C. C. (1996) J. Biol. Chem. 271, 9002-9008). Constitutive expression of G i␣2 blocks, whereas expression of G s␣ provokes, progression to primitive endoderm, permitting identification of the effectors of the response-utilizing chimera created between G i␣2 and G s␣ . N-terminal substitution of G s␣ with G i␣2 sequence to create chimera G i␣2 (1-54) /G s␣ produced a chimera that activated adenylylcyclase but abolished progression to primitive endoderm and activation of phospholipase C. C-terminal substitution of G s␣ with G i␣2 sequence to G s␣ /G i␣2 (320 -355) enhanced the ability of G s␣ to promote progression. The Q205L-activated mutant of G i␣2 suppresses, whereas the G225T-activated mutant of G s␣ strongly activates phospholipase C and progression in these cells. The N-terminal region of G s␣ (residues 62-86) appears to act as a dominant switch for the G s␣ -(activation) versus G i␣2 -(suppression) mediated control of phospholipase C and progression to primitive endoderm.Embryonal carcinoma cells mimic the early embryo and have proven to be a useful model for study of development. These stem cells can be induced to differentiate in vitro into cell types that resemble those found at various stages of early mouse development (1). Progression of F9 teratocarcinoma embryonic stem cells can be divided into two separate events, the production of primitive endodermal and of parietal endodermal cells. When F9 cells are exposed to retinoic acid (RA) 1 alone, cells become flat and show typical endodermal morphology, which is the functional equivalent of primitive endoderm (PE) of normal embryogenesis, and express the protease tissue plasminogen activator (tPA, a PE marker) as well as components of the basal lamina, such as type IV collagen and laminin B1 (2). Elevation of intracellular cyclic AMP levels in F9 cells treated in combination with RA promote primitive endodermal cells to a parietal endoderm-like phenotype in early mouse embryogenesis (1).Many complex biological processes such as oncogenesis, differentiation, and early neonatal mouse development have been shown to be regulated by heterotrimeric G-proteins, such as G s␣ and G i␣2 . In the F9 mouse teratocarcinoma model of early mouse development, G i␣2 levels decline precipitously in response to the morphogen RA as the cells commit to PE (3). Constitutive expression of RNA antisense to G i␣2 , but not to G i␣1 or G i␣3 , induces progression to PE in the absence of RA (4). Overexpression of G i␣2 , a G-protein that antagonizes G s␣ with respect to one known effector adenylylcyclase, blocks stem cells from progression to PE even in the presence of RA (4). Expression of G s␣ or its constitutively active mutant form induced PE in the absence of RA (5). Furthermore, the RA-induced decline in G i␣2 triggers F9 teratocarcinoma stem cells to progress to PE via activat...