Google and Nest may team up again to take on Amazon in the connected home race
It's been around two years since Nest was spun off into an independent company from Google, operating under the Alphabet umbrella, but a new report from the Wall Street Journal suggests that Alphabet is considering the possibility of folding Nest Labs back into Google's hardware team.
Inside sources familiar with the matter claim that this move could help Google better compete with Amazon in the connected home market. Nest hasn't been in the headlines as much recently, as it was when it operated directly under Google, but this year alone it released a handful of products, including more affordable a Nest Guard home alarm, as well as a more affordable Nest Thermostat E model.
According to the report, the two companies joining forces again could lead to the transfer of Nest's 1,000 over to Google's hardware division. Google is much more focused on hardware now than in years prior, pushing in both the smartphone and connected home markets with its line of Pixel smartphones and AI-powered Home speakers, but the competition is tough on both fields. According to the WSJ, Google and Nest have already merged their supply chain teams in 2016, and a full merger would allow for the sustained cooperation of other departments in the two companies.