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Nest Makes Return To Google Mothership For AI-Infused Smart Home Devices
February 19 2018, 07:48 | Alexander Lowe
Alphabet rolls its Nest smart-home unit back into Google
In 2014, Googleshelled out $3.2 billion to buy the company in a move that should've also supercharged the smart appliance maker. "It just makes sense to be developing them together", Osterloh said Tuesday. Nest's current CEO, Marwaz Fawan will now report to Google hardware chief Rick Osterloh, CNET reports. We have different journeys.
The companies had already begun to collaborate on hardware development, with Google past year testing acoustics and its speakers at a Nest facility.
In that time the company has also developed iterations of its thermostat and refurbished its acquisition of Dropcam into Nest Cam.
Google may have to adopt a similar approach to gain more traction - although merging Nest with Google may also obscure the losses it would nearly certainly incur from such a strategy. "By working together, we'll continue to combine hardware, software and services to create a home that's safer, friendlier to the environment, smarter and even helps you save money", the blog post said.
Previously, Nest operated under Alphabet's "Other Bets" group of projects.
There's been a major recovery at Nest over the past year, with the slow product release schedule having been replaced by a steady slew of new products. The company has said it will be "transparent" about changes made to Nest services but admitted the data may be used for more integrations as part of its "future plans". Meanwhile, Google has sold tens of millions of products for the home in just the a year ago, as more people use the Google Assistant to listen to their favorite music, control their connected devices, and get useful information about their day, Osterloh wrotein a blog post. It will be interesting to see if the design language of the Nest range changes to fall more in line with the other hardware from Google.
It's always been a little unusual that Google and Nest were two Alphabet companies making smart home products independent of each other, and the rumors have been circulating for a while now that this move was on the cards.