But from a business perspective, Google is merging with the only other part of Alphabet that now makes money. Its next product, Nest Hello, is a smart video doorbell that is scheduled for release in March. Current Nest CEO Marwan Fawaz will report directly to Osterloh and further consolidates Google's hardware platforms.
Alphabet's Google unit last week announced it had paid $1.1bn to buy a large chunk of HTC's hardware operations, gaining around 2,000 engineers in Asia.
Nest was formed in 2010, and was acquired by Google in 2014 for $3.2 billion.
"All of Google's investments in machine learning and AI, they can very clearly benefit Nest products".
Apparently, the merger between Nest and Google's Hardware team has been in the works for a few months, giving credibility to the November Wall Street Journal article suggesting the move would soon take place. Instead of being an independent company, under this minor restructure Nest will work alongside Google's hardware team, which is headed by Rick Osterloh. The closer collaboration between the teams is meant to create new integration opportunities that result in smarter home devices.
Wednesday's announcement brings Google and Nest back together to incorporate the search giant's artificial intelligence with Nest's smart home hardware. "Being part of the Google family, we get closer to that".
A united front could be helpful in competing with the other ubiquitous digital helpers of today - Amazon's Alexa and Apple's Siri. The result has been a dominant position in the market segment, and one that's the envy of Google and many other companies. To fend off the competition, Google needs better integration AI technologies and consumer products, and this is what it is doing by integrating Nest. Fawaz informed that Nest had shipped 11 million products since its first thermostat went on sale in 2011.