In a surprising revelation during Google’s ongoing antitrust trial, a senior executive disclosed that Alphabet Inc. has been quietly preparing its life sciences unit, Verily, for a potential sale or spin-off. The testimony came from Heather Adkins, Google’s vice president of security engineering, who stated that the company has spent the past two years technologically decoupling Verily from Alphabet’s core infrastructure. This move aims to make Verily more attractive to outside investors or buyers, allowing it to operate independently.

Verily, originally launched as Google Life Sciences in 2015 and rebranded in 2016, has been a key part of Alphabet’s “Other Bets” portfolio, focusing on innovative health technologies like wearable devices, precision medicine, and data analytics. Despite raising over $3.5 billion in funding and partnering with major pharmaceutical firms, Verily has faced challenges in scaling its ambitious projects, including the now-defunct Project Baseline health study.

Strategic Shifts Amid Regulatory Scrutiny

The decoupling effort aligns with broader changes at Alphabet, which has been under intense regulatory pressure. In the Virginia courtroom where Adkins testified on Thursday, the discussion arose in the context of Google’s data practices and market dominance, as reported by Bloomberg. This isn’t the first sign of turbulence for Verily; just months ago, in August 2025, the unit announced layoffs and the discontinuation of its devices program, with CEO Stephen Gillett warning of “difficult decisions” ahead in an internal memo covered by Business Insider.

Industry analysts suggest this move reflects Alphabet’s pivot toward core businesses like search and AI, especially as CEO Sundar Pichai seeks to streamline operations amid economic headwinds. Verily’s separation could fetch a significant valuation, given its intellectual property in areas like AI-driven diagnostics and population health management, though exact figures remain speculative.

Implications for Health Tech Innovation

Posts on X (formerly Twitter) from sources like Techmeme and Bloomberg echoed the news swiftly, highlighting sentiment among tech insiders that Alphabet is shedding non-core assets to focus on high-growth areas. One post noted the two-year preparation timeline, underscoring a deliberate strategy rather than a hasty retreat. This comes as the health technology sector sees consolidation, with competitors like Amazon’s One Medical and Apple’s health initiatives gaining traction.

For Verily, independence could mean greater agility. The unit has developed promising tools, such as its immune profiling platform and collaborations with entities like the CDC for wastewater epidemiology—ironically, Verily took over a contract from Biobot Analytics in 2023, as mentioned in archived X discussions. However, challenges persist: Verily reported losses exceeding $800 million in recent years, per financial disclosures.

Potential Buyers and Market Reactions

Speculation about buyers is rife, with private equity firms or health conglomerates like Johnson & Johnson potentially interested. According to Investing.com, the spin-off could accelerate Verily’s growth by tapping into dedicated health-focused capital. Stock market reactions were muted, with Alphabet shares dipping slightly on the news, as tracked by GuruFocus, but analysts see long-term benefits in reducing Alphabet’s exposure to high-risk ventures.

This development mirrors past Alphabet restructurings, such as the 2019 spin-off of Waymo’s autonomy tech. Insiders familiar with Verily’s operations, speaking anonymously, indicate that while the unit has pioneered advancements in bioinformatics, integrating them into profitable models has proven elusive amid regulatory hurdles in healthcare.

Broader Industry Context and Future Outlook

The timing is notable amid a wave of tech-health mergers. Recent X posts referenced deals like Reliance Digital Health’s stake in a U.S. alliance group, signaling global interest in virtual care platforms. Verily’s potential exit from Alphabet could invigorate competition, pushing innovations in areas like AI ethics and data privacy—core to its mission.

Ultimately, this move underscores Alphabet’s maturation from moonshot factory to disciplined conglomerate. As NDTV Profit detailed, the technological separation ensures Verily can thrive on its own, potentially reshaping how big tech engages with life sciences. For industry watchers, it’s a reminder that even giants like Alphabet must adapt to sustain innovation without overextending resources.