Nest, known for it's slick thermostats and user-friendly security cameras, was acquired by Alphabet (then called Google) for $US3.2 billion ($4.1 billion) in 2014.
"All of Google's investments in machine learning and AI, they can very clearly benefit Nest products". However late a year ago, there were reports that Google could be looking to merge Nest with its hardware team. We have different journeys. The company doubled its hardware portfolio last year - selling more devices in 2017 than the previous two years combined.
Google's vision, however, of taking the lead in the smart home products market will point the company on a direct collision course with Apple and Amazon. 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.More news: Two arrested for child porn that went viral on Facebook
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Google, which is also a part of Alphabet, houses companies such as Android and YouTube among other profitable subsidiaries. Google will not compromise on their products or we can say their hardware components, instead the Nest will add some more smart home appliances which will work with the existing Google products in the future with the use of Google Assistant.
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. Privacy concerns This is the first time that an independent Alphabet company has been relocated inside Google.
"We've had a head start on collaborating since our teams already work closely together, and today we're excited to make Nest an integral part of Google's big bet on hardware", the company writes. To fend off the competition, Google needs better integration AI technologies and consumer products, and this is what it is doing by integrating Nest. Apple will release its HomePod speaker, with Siri as assistant, this week.
But from a business perspective, Nest is being merged with Google, the only other part of Alphabet that now makes money.