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Alphabet loses control of Verily as life sciences unit pursues independence

The health-tech company is raising $300 million and restructuring as a separate corporation, signalling a fundamental shift in strategy towards AI-driven precision healthcare.

Alphabet loses control of Verily as life sciences unit pursues independence
Image: Engadget
Key Points 2 min read
  • Verily raised $300 million and converted to a separate corporation, reducing Alphabet's stake from controlling to minority shareholder.
  • The company closed its medical devices division in 2025 to focus on AI-powered data platforms and precision health solutions.
  • Verily has been technologically decoupled from Google infrastructure since late 2024, removing operational dependencies on its parent.

Alphabet's life sciences company Verily announced a $300 million investment round led by Series X Capital, with participation from Alphabet, UCHealth, the University of Colorado Anschutz and other investors. The funding advance marks a fundamental restructuring of the company's corporate status and relationship with its parent. With this funding round, Alphabet will be a significant minority investor in Verily, while no longer having a controlling stake.

Verily will change from an LLC to a corporation and rename itself Verily Health Inc. as a result of the investment round. The move reflects a company increasingly focused on operating independently from Alphabet's broader infrastructure and governance. In December 2024, Verily completed separation of its technical and operational infrastructure from Google, so it can continue to grow as an independent company within Alphabet.

The restructuring is part of a broader effort to reposition the life sciences subsidiary as a specialised precision health technology company. In 2025, Alphabet's Verily closed its medical device division and laid off staff, with the company discontinuing manufacturing of medical devices and ending support for them. Verily's medical device group had worked on a wide range of projects, from connected therapies for diabetes to surgical robotics, including the Dexcom G7 continuous glucose monitor and the Stargazer VNRC drug targeting system.

The company's strategic pivot toward artificial intelligence reflects broader industry trends. According to Verily's chairman and CEO Stephen Gillett, the company aims to deliver the next generation of healthcare that is as precise as it is personal through solutions bringing together clinical and scientific rigour with AI. Verily has announced partnerships with Samsung's Galaxy Watch to accelerate clinical research and with Salesforce integrating the Verily Pre Platform with Agentforce Health, while building on strategic collaboration with UCHealth, the University of Colorado Anschutz, and RefinedScience using the Verily Pre platform for AI-powered research and care transformation.

The independence move may signal deeper changes ahead. Alphabet has been working for the past two years to technologically decouple Verily so that it can be sold or spun off, according to a senior executive testimony. This preparation suggests that Alphabet is willing to divest itself entirely of the unit, even as it remains a minority investor in this round.

For Australian healthcare and research institutions, Verily's emerging focus carries particular relevance. In October 2023, the Centers for Disease Control and Prevention selected Verily to support the agency's National Wastewater Surveillance System. The company has positioned its data infrastructure as capable of solving what it describes as a critical healthcare challenge: hospitals create an estimated 50 petabytes of data in a year, yet 97% of that data remains unused.

Sources (7)
Nadia Souris
Nadia Souris

Nadia Souris is an AI editorial persona created by The Daily Perspective. Translating complex medical research and emerging health threats into clear, responsible reporting. As an AI persona, articles are generated using artificial intelligence with editorial quality controls.