The story
Founded by Matt Rogers and Tony Fadell in 2010.1
Nest Labs before acquisition by Google
Nest Labs was founded in 2010 by former Apple engineers Tony Fadell and Matt Rogers. The idea came when Fadell was building a vacation home and found all of the available thermostats on the market to be inadequate, motivated to bring something better on the market. Early investors in Nest Labs included Shasta Ventures and Kleiner Perkins.
Acquisition by Google of Nest Labs, Dropcam, and Revolv
On January 13, 2014, Google announced plans to acquire Nest Labs for $3.2 billion in cash. Google completed the acquisition the next day, on January 14, 2014. The company would operate independently from Google's other businesses.
In June 2014, it was announced that Nest would buy camera startup Dropcam for $555 million. With the purchase, Dropcam became integrated with other Nest products; if the Protect alarm is triggered, the Dropcam can automatically start recording, and the Thermostat can use Dropcam to sense for motion.
In September 2014, the Nest Thermostat and Nest Protect (a smoke alarm) became available in Belgium, France, Ireland, and the Netherlands. Initially, they were sold in approximately 400 stores across Europe, with another 150 stores to be added by the end of the year. In June 2015, the new Nest Cam, replacing the Dropcam, was announced, together with the second generation of the Nest Protect; there were internal reports that sales of the rebranded camera fell.
On October 24, 2014, Nest both acquired the hub service Revolv, and discontinued its product line, gaining the expertise of Revolv's staff.
Nest as a subsidiary of Alphabet Inc.
In August 2015, Google announced that it would restructure its operations under a new parent company, Alphabet Inc., with Nest being separated from Google as a subsidiary of the new holding company.
In January 2016, some Nest thermostats stopped working, a fault attributed to a software update from two weeks earlier. There were no lawsuits, individual or class-action, due to an arbitration clause in the contract.
All Revolv smart hubs, costing several hundred dollars, were deliberately remotely bricked on May 15, 2016; notice was posted on the company's website in February. The story became news on April 4. The "lifetime subscription" to Revolv's online service, which had been sold with the hub, was defined by Nest to be the lifetime of the device, which ended May 15.
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Nest's decision to brick the hubs, and its "acerbic" corporate culture, faced substantial criticism from within Google/Alphabet and in press coverage. Many of Nest's staffers came from Dropcam and Revolv, and by November 2015, about 70 of about 1000 staffers had quit, causing management concern. Some countermeasures had been taken in takeover deals, to financially discourage senior people from leaving before set dates. Of the ~100 Dropcam staffers, about half had left by March 2016, when former Dropcam CEO Greg Duffy (who left 8 months after the takeover) wrote a post openly regretting selling his company to Nest. He stated that about 500 people had left (of a 1200-person staff).
On June 6, 2016, Tony Fadell, the Nest CEO, announced in a blog post that he was leaving the company he founded with Matt Rogers and stepping into an "advisory" role. At this point the Nest acquisition was described by some press as a "disaster" for Google. As of mid-June 2016, Nest's problems were considered symptomatic of the limited market for home automation. According to Frank Gillet of Forrester Research, only 6% of American households possessed internet-connected devices such as appliances, home-monitoring systems, speakers, or lighting. He also predicted this percentage would grow to only 15% by 2021. Furthermore, 72% of respondents in a 2016 British survey conducted by Pricewaterhouse Coopers did not foresee adopting smart-home technology over the next two to five years.
Nest as a part of Google hardware division
On February 7, 2018, it was announced by hardware head Rick Osterloh that Nest had been merged into Google's hardware division, directly alongside units such as Google Home and Chromecast. It would retain its separate Palo Alto headquarters, but Nest CEO Marwan Fawaz would now report to Osterloh, and there were plans for tighter integration with Google platforms and software such as Google Assistant in future products. Shortly after the announcement, co-founder and chief product officer Matt Rogers announced his plans to leave the company.
On July 18, 2018, Nest CEO Marwan Fawaz stepped down. Nest was merged with Google's home devices team, led by Rishi Chandra. During the Google I/O keynote on May 7, 2019, it was announced that Google Nest will now serve as the blanket branding for all of Google's home products. The Google Home Hub was retroactively renamed Google Nest Hub, while a new and larger version of the product is now available called the Nest Hub Max with both a larger screen and an amplified speaker, for a greater low-end audio experience. Also, product lines such as Chromecast, Google Home, and Google Wifi will now be marketed under the Google Nest brand. In addition, Nest began to deprecate its own internal platforms, announcing the discontinuation of the existing "Works with Nest" program in favor of Google Assistant going forward, and pushing users to migrate themselves from Nest's account system to Google accounts. Google published Nest-specific privacy information outlining a commitment to transparency, not selling personal information, and giving users control of their data.
In February 2019, a privacy incident affecting the Google Nest Guard system came about. The controversy stemmed from the fact that Nest Guard, a security device that was part of the Nest Secure system, contained a hidden microphone that was not disclosed in any product specifications. It resulted in a public relations failure.
Partnership with ADT
In August 2020 Google announced intent to invest $450 million in ADT Inc. for a 6.6% stake in the company. The companies intend to integrate Nest devices with ADT's security monitoring services and eventually make them the “cornerstone of ADT’s smart home offering”, according to Nest. Upon the announcement, the shares of ADT doubled in value and hit all-time high of $17.21.
Use with Amazon Alexa
As of mid-2022, Google's newer Nest cameras will now work with Amazon Alexa devices such as Amazon Echo Show, Fire TV, and Fire Tablet to view captured security camera footage.
End of support policies
On October 25, 2025, software support was ended for the 1st and 2nd generation Nest Learning Thermostats. In addition, most of the smart functionality including the Home Away features, notifications, and carbon monoxide sensor became inoperative as they were dependent on connection with Google servers. By mid-November, third-party software solutions became available to restore functionality to affected thermostats.
From Wikipedia’s article on Google Nest, shared under CC BY-SA 4.0.4
