Amazon in the smart home, Apple for smartphones or Microsoft on computers … Google invests on many fronts and facing many competitors … and spends millions to catch up. On the occasion of the publication of its half-year results, The Verge calculated that the tech giant had spent more than half a billion dollars … only in Nest.

Google’s parent company , Alphabet, released its quarterly results on Monday, April 23. With a net profit that jumped 74% to $ 9.4 billion and a turnover of $ 31.1 billion (+ 26%), these results are above expectations. But, even more interesting, The Verge has plunged into numbers to deduce Nest’s losses and gains. The connected home specialist who was officially absorbed by Google in February this year , his results have gone from the “Other Bets” section of Alphabet to the results of Google. As a result, Google has released a recalculated version of its 2017 fiscal year.

Making the difference between the two, The Verge concludes that Nest has recorded approximately $ 726 million in revenue for 621 million losses in the year. Google spent more than half a billion dollars last year to build Nest’s awareness of the connected home. While Nest was quieter in recent years, in September 2017 this entity has multiplied the release of new products: outdoor cameras, videophone input, alarm system, … These novelties involving upstream expenditures.


If Google spends so much on the development of these objects, how much the giant of the Internet invests in R & D for his personal assistant, his smartphones or his computers, questions the information site. Google has to face other tech giants in each of these areas: it is facing Apple in phones, Microsoft for computers, and Amazon in the connected home and voice assistants. And he has already proven that he is willing to spend considerable sums in the saturated smartphone market even though no one expects Google to catch up with Apple (or Samsung ) in this segment.

But the firm still has chances to catch up with Amazon and her vocal assistant Alexa in the smart home market. That’s why the Nest entity has been linked to Google. The goal is to integrate the artificial intelligence Google Assistant to all its connected objects. And with teams now integrated into Google’s hardware teams (responsible for Google Home speakers, among others), Nest can focus on finding new objects and applications without having to expand the ecosystem of compatible third-party objects. Between Google and Amazon the race is harder than ever in the field of smart home.