Verily, Alphabet’s life sciences subsidiary, has set an ambitious December 16 deadline to complete its separation from Google, marking a significant milestone in its journey toward full independence. According to internal documents and sources familiar with the matter, the company is systematically removing itself from shared Google infrastructure, including cloud services, employee benefits, and internal systems.
The separation effort, codenamed Project Flywheel, was first reported in 2021 and represents a critical stepping stone toward Verily’s goal of becoming a fully independent company. While Verily will remain part of the Alphabet holding company after the December deadline, leadership has emphasized that this infrastructure separation is essential for eventual complete independence.
Verily’s product portfolio includes several AI-powered health technologies, most notably Lightpath, an artificial intelligence platform designed for chronic care management. The company also offers retinal scanning technology, clinical trial management services, and has diversified into areas like wastewater testing and mosquito-borne disease reduction.
Employees are already experiencing tangible changes as the separation progresses. Staff members have received new laptops, office badges, and email addresses that no longer use Google’s domain. By the end of December, Verily employees will lose access to Google’s employee benefits package and transition to a completely separate benefits system managed by Verily.
The company’s path to independence has been marked by speculation about a potential IPO. While leadership has historically presented a public offering as a possibility—described by one employee as being held up “as a carrot” to staff—internal documents acknowledge that “we do not have a set timing for independence at this time.” Alternative paths outside of Alphabet remain possible.
Verily’s viability as an independent entity remains uncertain among company insiders. Critics point to frequent product pivots, leadership turnover, and what some describe as a “mishmash of unrelated projects.” Despite these concerns, Verily has raised substantial funding, including a $1 billion round in 2022 led by Alphabet, with total funding exceeding $3.5 billion according to Pitchbook data. Alphabet is expected to remain Verily’s largest investor post-separation.
Originally known as Google Life Sciences and born from Google X’s moonshot lab, Verily represents one of Alphabet’s longest-running experimental ventures, making it a logical first candidate for this separation journey.
Key Quotes
In order to one day become an independent company, Verily must first separate from Google’s infrastructure and systems and stand up and operate its own.
This statement from internal Verily documents explains the fundamental rationale behind Project Flywheel, emphasizing that infrastructure independence is a prerequisite for the company’s eventual full separation from Alphabet.
Project Flywheel is the effort that allows us to do this - and is therefore an essential stepping stone on this journey and path to independence.
Internal documentation reveals how Verily leadership frames the separation project to employees, positioning it as the critical enabler of the company’s long-term independence aspirations.
Verily is transitioning from Google’s infrastructure to our own, as we continue to grow as an independent Alphabet company. This move enables us to advance our technology based on what’s best for Verily and our healthcare and life sciences customers.
Verily spokesperson Steven Cooper provided this official statement, emphasizing the strategic benefits of infrastructure independence for developing AI-powered healthcare technologies tailored to specific customer needs.
We are one of the longest running bets, and as such, it makes sense that we are the first Alphabet company to embark on this journey.
This internal document excerpt positions Verily as a pioneer among Alphabet’s experimental ventures, suggesting its maturity and longevity make it the logical candidate to test the path toward full independence.
Our Take
Verily’s separation reveals the hidden complexities of AI healthcare commercialization. While the company has developed sophisticated AI platforms like Lightpath for chronic care, the path from Google-backed moonshot to independent business remains fraught with challenges. The criticism about “constant pivots” and “unrelated projects” suggests Verily may be struggling with the classic innovator’s dilemma—trying to do too much without a clear core focus.
The December deadline is aggressive, perhaps reflecting pressure from Alphabet to demonstrate viability or reduce dependencies. The fact that Alphabet will remain the largest investor post-separation indicates this isn’t a true independence play yet, but rather a controlled experiment in operational autonomy. For the broader AI health tech sector, Verily’s experience will provide valuable lessons about whether AI-powered healthcare platforms can achieve sustainable business models outside the protective umbrella of Big Tech infrastructure and funding.
Why This Matters
This development represents a critical test case for Alphabet’s ambitious strategy of nurturing moonshot projects into independent businesses. Since the 2015 corporate restructuring that created Alphabet, the holding company has produced mixed results—Waymo has gained traction in autonomous vehicles, while other projects have been scaled back or shuttered amid cost pressures.
Verily’s separation is particularly significant for the AI healthcare sector, as the company’s Lightpath platform and other AI-powered health technologies represent the convergence of artificial intelligence and life sciences. The success or failure of Verily’s independence could influence how other tech giants structure their AI health ventures and whether specialized AI applications in healthcare can sustain independent business models.
The timing also reflects broader industry trends toward operational efficiency and focused business units. As AI companies face increased scrutiny over profitability and sustainable growth, Verily’s journey from Google infrastructure to independence offers insights into the real costs and challenges of scaling AI-powered health technology businesses. The outcome will likely influence investor confidence in AI health tech startups and inform strategic decisions at other Alphabet subsidiaries pursuing similar independence paths.
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Source: https://www.businessinsider.com/verily-leave-google-alphabet-flywheel-life-sciences-2024-11