Verily is Closing Its Medical Device Program as Alphabet Shifts More Resources to AI
Alphabet’s life sciences arm, Verily, is undergoing a major restructuring. Verily is closing its medical device program as Alphabet shifts more resources to AI, marking a significant pivot toward artificial intelligence and data-driven healthcare solutions.
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CEO Stephen Gillett announced the “difficult decision” in a staff memo, confirming that the entire devices program will be eliminated. This move underscores Alphabet’s increasing focus on AI as it trims projects that no longer align with its long-term vision.
Why Verily is Closing Its Devices Program
For years, Verily gained recognition for developing innovative medical devices aimed at improving patient care. But Gillett admitted that the “path forward requires difficult decisions,” emphasizing that the company’s future lies in AI-powered data platforms rather than hardware.
This shift reflects Alphabet’s broader strategy of consolidating resources in artificial intelligence while scaling back costly experimental programs.
Alphabet’s Bigger AI Push
The decision to shut down Verily’s device efforts is part of a wider trend within Alphabet. The tech giant has aggressively increased AI investments, even as it trims staff in other areas.
Earlier this year, Alphabet reduced headcount across HR and cloud units, while also offering voluntary exit programs to over 25,000 employees in its Platforms & Devices division. These changes highlight a clear corporate strategy: streamline operations and double down on AI innovation.
What This Means for the Future of Verily
By stepping away from hardware, Verily is positioning itself as a leader in AI-driven healthcare solutions. Instead of designing devices, the company will focus on building tools that leverage AI and data infrastructure to support research, diagnostics, and patient outcomes.
While some may see this as a retreat, it signals a more defined role for Verily within Alphabet’s AI-first strategy—shaping the future of healthcare through smarter, data-centric solutions.
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