Alphabet Plans Verily Spinoff as Google Prepares Separation from Life Sciences Unit

Alphabet Inc. is preparing to separate its life sciences subsidiary, Verily, in what could lead to a full sale or spinoff, according to recent testimony in a federal antitrust trial against Google. The move, revealed in court by Heather Adkins, Google’s Vice President of Security Engineering, marks the first public confirmation that Alphabet intends to divest Verily from its corporate structure.

Speaking in a Virginia courtroom, Adkins explained that Verily has been transitioning its operations from Google’s internal infrastructure to Google Cloud Platform for more than two years. This effort aims to make Verily technologically independent, a crucial step for any potential sale or spinoff. “We are in the process of helping them become an independent company,” Adkins stated. “The idea is to have it no longer be an Alphabet entity.”

Verily, launched as part of Alphabet’s push into health sciences, focuses on developing digital health solutions, data-driven research tools, and technologies that improve patient care. While Alphabet has previously worked to reduce Verily’s reliance on Google systems, Thursday’s testimony represents the clearest signal yet that Alphabet is preparing to cut ties with the unit.

The separation comes as Alphabet faces increased scrutiny over its dominance in digital advertising. The Justice Department’s case against Google centers on alleged monopolistic practices, and Adkins’ testimony offered a rare glimpse into Alphabet’s broader restructuring plans.

If Verily is spun off or sold, the move could reshape Alphabet’s portfolio by narrowing its focus on core businesses such as Google Search, YouTube, and cloud services, while positioning Verily to attract independent investors and partnerships in the rapidly growing health technology sector.

The potential spinoff underscores Alphabet’s evolving strategy of streamlining its business while allowing innovative subsidiaries like Verily to pursue independent growth paths in competitive industries.