Google's Advanced Technology and Projects (ATAP) division, which is behind ambitious projects like modular phones and "smart fabric," will remain with Google in the wake of the company's reorganization as a subsidiary of a new company, Alphabet, the company has confirmed.
In addition, Google is keeping Project Fi, its effort to become a wireless carrier (technically a "virtual" wireless carrier) which just launched in the spring.
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The holdovers are a little surprising since ATAP is often compared to newly Alphabetized Google X, which seeks out technological breakthroughs to solve big problems. ATAP has similar ambitions with devices, looking to make major -- not incremental -- improvements to existing technologies and, in the words of ATAP Vice President Regina Dugan, "do some epic shit."
At the same time, Project Fi has a natural connection to Fiber, which is becoming part of Alphabet. Fiber is Google's (now Alphabet's) plan to offer and improve upon wireline Internet service, and Fi has a similar mission with wireless networks. Many even speculated that the name "Fi" was a play on Fiber since their services complement each other.
What both ATAP and Project Fi have in common, however, is a strong connection to Android, which likely was the deciding factor for Google. By staying with Google, teams with Fi and ATAP projects like Ara and Jacquard won't need to tunnel through extra layers of bureaucracy to interact with Android, which is probably a good thing.