Google Parent Company Alphabet Pulls the Plug on Power-Generating Kite Project
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Google parent pulls the plug on power-generating kite project:
Google-parent Alphabet is shutting down its power-generating kites company Makani, the first closure of a so-called moonshot project since founders Larry Page and Sergey Brin stepped back from management in December.
Sundar Pichai, who took over as Alphabet chief executive, is under pressure to stem losses from the company's "Other Bets" segment, which includes endeavors such as self-driving cars and Internet-providing balloons. Other Bets lost $4.8 billion last year-widening from a $3.4 billion loss in 2018.
Makani was acquired in 2013 and taken into the experimental "X" lab. It was developing airborne wind turbines that could be tethered to floating buoys, removing the need for the expensive ocean bed structures needed to support permanent turbines.
"It's been a very hard choice for us," said Astro Teller, chief executive of X, speaking to the Financial Times on Tuesday.
"Our estimate of the rewards for the world, the reward to Alphabet, and the risks and costs to get there..."they change over time. It's part of my job to assess that and make sure that we're picking the best ones we can for Alphabet to spend its money on."
Alphabet would not confirm the size of Makani, only saying it consisted of "dozens" of employees that it hoped it could be reassigned to other climate change-related work at Alphabet. A small team will stay on for a few months to collate Makani's research.
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