Nest is being folded back into Google

  • Nest is being folded back into Google

Nest is being folded back into Google

Google bought Nest in 2014 for $3.2 billion.

It's now possible to control Nest thermostats and cameras with Google Assistant through a Google Home or smartphone, but no Nest devices are now enabled with a voice assistant. Google said that this is to "supercharge" the original mission of Nest, which is "to create a more thoughtful home" that will take care of the people within it. While Nest products already have Google's virtual assistant built-in, combining the hardware, software, and services of both companies will solidify it and will have the artificial intelligence and the Assistant as the core of all the products. Its founder, iPod and iPhone designer Tony Fadell, left the company in 2016 after creating what was reportedly a "toxic" work environment; former employees also criticized his management style on Medium. In this case, their development towards a strong leverage will be introducing AI in every piece of hardware in the Google catalog, and now Nest properly enters the home appliance battle. Nest makes devices like smart thermostats, smoke detectors, and security cameras.

Nest Labs will no longer develop smart home products as a mere subsidiary of Alphabet. Nest's engineers could work closely with the teams behind products such as the Google Home, Google Pixel, and the Pixelbook, to bring such devices into its smart home ecosystem.

The reunion between these companies has been rumored since November, in order to expand Google's home hardware team. That catch-all bucket is becoming increasingly important, now representing 13% of Google's total revenue.

Nest, while recently sidelined by flashier entries into the market from Amazon and Google, was among the progenitors of the connected home. continues to dominate the smart-home market with its Echo lineup, and Apple is preparing to jump in with HomePod's launch on Friday. That's right - they think these 10 stocks are even better buys. Amazon is taking over the marketplace, and this has pushed Google to find a competitive angle. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has a disclosure policy.