Nest To Merge With Google's Hardware Team

Nest To Merge With Google's Hardware Team

Nest To Merge With Google's Hardware Team

That's why many raised their eyebrows when Google announced it was acquiring Nest to begin with.

But that structure is about to change. "Being part of the Google family, we get closer to that".

Hardware chief Rick Osterloh announced the news today in a blog post, a move that had previously been rumored late a year ago following a report from The Wall Street Journal. It's responsible for products like the Pixel and Google Home. By meshing the two hardware teams together, Google hopes to bring more innovative products to consumers and give it a better shot of taking on powerful competitors like Amazon and Apple. Since then the company has grown - according to Geekwire it has more than quadrupled its staff, and it's rolled out a wide range of products, including cameras, an alarm system and a smart doorbell.

Google's hardware head Rick Osterloh and Nest CEO Marwan Fawaz made a joint announcement on Google's blog today, stating that moving the Nest team into Google's hardware group will combine the two teams's products and service to help create smart homes, with Google Assistant running things inside.

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In the same post, it was indicated that teams from Google and Nest will closely collaborate to realize the common goal of building on the gains so far achieved by the company's AI thrust with Google Assistant taking a central role in the project's implementation.

Nest device sales represented a big chunk of revenue for Alphabet's "Other Bets" division, which brought in $1.2 Billion a year ago.

By 2022, AI-focused devices will have amounted to total revenue of no less than $50 billion, which is a huge leap from the $31 billion already spent on smart home gadgets by the end of 2017. That catch-all bucket is becoming increasingly important, now representing 13% of Google's total revenue. This partnership will bring Google Assistant to their future hardware along with Google Cloud AI services.

Amazon.com continues to dominate the smart-home market with its Echo lineup, and Apple is preparing to jump in with HomePod's launch on Friday.

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