In preparation to Google Home's launch, developers from Google parent company Alphabet's Nest subsidiary will move over to Google to work on smart home projects.
Nest Labs Developers Move To Google
As reported by Fortune, Google ramps up its efforts in the smart home field and prepares to launch its Google Home competitor to Amazon Echo. Engineers responsible for the Nest Labs platform will move to Google and will be working with Android chief Hiroshi Lockheimer to help support Google's ambitions in smart home related projects.
The Verge reports that this engineering resource shift is happening just at the moment when Google is preparing to launch its artificial intelligence (AI) speaker called Google Home. The smart gadget was announced by Google in May, at the I/O developer conference.
Google did not previously announce any strategic partnerships with third-party products for developing the AI speaker Google Home, because Nest has already these partnerships in place. With its "Works with Nest" platform, Nest Labs Alphabet subsidiary has partnerships in place with companies like Philips, Belkin and smart lock maker August. Therefore, it would make sense for Google to use the experience of its colleagues at Nest in order to help with Google Home's development.
Alphabet subsidiary Nest Labs is better known as a producer of Internet-connected smoke detectors and thermostats. Undergoing a restructuring, Nest's entire platform team will become part of Google, in order to create a unified Internet of things platform and work on Google Home.
Google and Nest are not only planning this move as an synergy, but it will also match the ongoing efforts to minimize costs at smaller Alphabet units. Nest's financial situation might dramatically improve by moving Nest software developers over to Google payroll.
Google acquired Nest Labs in the year 2014, paying $3.2 billion. However, this year the deal has shown serious signs of strain. Back in June, Nest co-founder and CEO Tony Fadell has been forced to step down amidst disappointing sales figures and reports of tensions with Alphabet management.