• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Google

Alphabet Gets More Serious About Making ‘Other Bets’ Work

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
July 1, 2016, 1:01 PM ET
Interviews With Industry Leaders At Viva Technology Conference
Attendees inspect a Google Inc. self-driving car at Viva Technology conference in Paris, France, on Thursday, June 30, 2016. The first edition of the new European Tech conference Viva Technology brings together 5,000 startups with top investors and future shaping companies. Photographer: Marlene Awaad/Bloomberg via Getty ImagesPhoto by Marlene Awaad—Bloomberg via Getty Images

Google‘s parent company Alphabet is apparently setting up a another way to make its pie-in-the-sky “Other Bets” businesses into productive entities.

Last August, when Google (GOOG) re-composed itself as a holding company called Alphabet with several units, one motivation was to partition off its moonshot projects from its bread-and-butter search and advertising businesses. The thinking was that this would nurture them as startups working on self-driving cars and other futuristic ventures. But a somewhat contradictory rationale was to push them to succeed (or fail) on their own merits while the core Google entity, under chief executive Sundar Pichai, remained focused on Internet search, advertising, cloud computing, Chrome, Android, and YouTube.

Get Data Sheet, Fortune’s technology newsletter.

On Friday, Bloomberg reported that Alphabet is now pushing its “Other Bets” groups to create their own equity grants, the value of which will be based on how the individual unit performs. That way managers and employees will have incentives to make a go of the business. Some of the Other Bets groups—which include Nest, Verily (once known as Google Life Sciences), Google X, and GV (formerly Google Ventures)—are further down this road than others, according to the report citing unnamed sources.

For more, read: Google Moonshots Are Becoming a Massive Pain

Verily, according to Bloomberg, is pretty far along in the process that would call for its employees to get Verily shares, the value of which would be assessed by an independent party. After six months, the employee can sell shares to Alphabet for cash or Alphabet stock.

From the report:

The changes are designed to help Larry Page, Alphabet’s chief executive officer and a Google founder, get Other Bets companies running more like fast-moving, lean startups and less like research divisions of a highly profitable internet giant.

Other Bets executives can also opt out of using the stock system, one source told Bloomberg, although that would seem to negate the whole purpose.

For more on Google’s other bets watch:

Google’s dilemma mirrors the conundrum of research and development in general. On the one hand, purists see the need to conduct research for its own purpose—to learn things. But there is pressure at academic institutions as well as enormous for-profit corporations, like Google and Microsoft (MSFT), to make research pay its way and even contribute to profits. Alphabet has been treading that fine line for a while now.

Fortune reached out to Google for comment and will update this story as needed.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Success
Even with $850 billion to his name, Elon Musk admits ‘money can’t buy happiness.’ But billionaire Mark Cuban says it’s not so simple
By Preston ForeFebruary 6, 2026
2 days ago
placeholder alt text
Success
Gen Z Patriots quarterback Drake Maye still drives a 2015 pickup truck even after it broke down on the highway—despite his $37 million contract
By Sasha RogelbergFebruary 7, 2026
23 hours ago
placeholder alt text
Success
Nestlé’s CEO drinks 8 coffees a day, but says Gen Z staffers are his secret to staying sharp by ‘learning constantly’
By Emma BurleighFebruary 5, 2026
3 days ago
placeholder alt text
Success
Larry Ellison and Jeff Bezos have seen more than $66 billion swiped from their net worths since the start of this year as AI-driven slump sees tech billionaires’ wealth free-fall
By Emma BurleighFebruary 6, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of gold as of February 6, 2026
By Danny BakstFebruary 6, 2026
2 days ago
placeholder alt text
Crypto
Bitcoin whales and ETFs are bailing out of the market; UBS warns: ‘Crypto is not an asset’
By Jim EdwardsFebruary 6, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in

Arts & EntertainmentSuper Bowl
How much will the winners (and losers) of Super Bowl LX get paid?
By Sydney LakeFebruary 8, 2026
2 minutes ago
Real EstateHousing
We may be looking at the housing affordability crisis all wrong. Higher earners are driving home prices, not lack of supply, researchers say
By Jason MaFebruary 7, 2026
8 hours ago
Asiaeconomic outlook
Malaysia’s economy minister sees 2026 as a year of ‘execution’ as Anwar administration tries to lock in policy gains
By Nicholas Gordon and Angelica AngFebruary 7, 2026
9 hours ago
PoliticsElections
ICE protests, Bad Bunny flip script on Trump’s midterms playbook
By Alicia Diaz, Augusta Saraiva and BloombergFebruary 7, 2026
10 hours ago
Arts & EntertainmentFootball
The Super Bowl made scarcity its superpower
By Randall Williams and BloombergFebruary 7, 2026
10 hours ago
EconomyFintech
Dorsey’s Block cutting up to 10% of staff in efficiency push
By Natasha Mascarenhas, Emily Mason and BloombergFebruary 7, 2026
11 hours ago