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Verily plans to raise money, refocus on AI in 2025

Dec 18, 2024 - businessinsider.com
Verily, an Alphabet spinoff, is planning to focus its strategy on healthcare AI by 2025 as it seeks to mature and operate independently from Alphabet. The company aims to provide tech infrastructure for other healthcare entities to develop AI models and apps, positioning itself as a one-stop-shop for tech needs like AI training for drug discovery and health coaching apps. Verily is also looking to raise another round of capital, potentially led by Alphabet, to support its transition. The company has faced criticism for a lack of clear strategy in the past but is now concentrating on precision health capabilities and expanding its healthcare business, including relaunching its Lightpath app with AI enhancements.

As part of its restructuring, Verily has been reducing its reliance on Google's systems through an initiative called Flywheel, with a deadline set for December 2024. This separation involves losing many Google benefits, which has caused some discontent among employees. The shift to AI coincides with leadership changes, including the hiring of Myoung Cha and Bharat Rajagopal. Verily's CEO, Stephen Gillett, has emphasized the company's focus on fewer initiatives with greater resources, following workforce reductions and project pruning to streamline operations.

Key takeaways:

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  • Verily plans to focus its strategy on healthcare AI by 2025, aiming to provide tech infrastructure for other companies to build AI models and apps.
  • The company is working towards independence from Alphabet, planning to raise another round of capital, potentially led by Alphabet, while also seeking outside investors.
  • Verily's shift to AI aligns with its internal restructuring efforts, including cutting ties with Google's systems and reducing its workforce to focus on fewer initiatives.
  • The company intends to relaunch its diabetes and hypertension app, Lightpath, in 2026 with AI coaches, and expand its healthcare offerings to more conditions.
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