Despite releasing a few updated products since then and Fadell taking control of Google Glass, Nest hasn't lived up to everyone's expectations, with delays and outages. In an interview with The Information, Fadell claimed some members of the team at Dropcam were "not as good as we'd hoped." Former Dropcam CEO Greg Duffy responded by saying that was simple scapegoating, and challenged Fadell to release Nest's financials to show how the company is doing.

There wasn't much in the way of a response from Google, but the company did just unveil a new Google Home device -- without any Nest branding. As far as what's next for Fadell other than the advisory role, he's already working on a smart go-kart for kids, and told Bloomberg that he has been "secretively" investing in over 100 companies that "can change the world in a positive way."

The incoming CEO Marwan Fawaz was hired by Google in 2012 to run Motorola's cable box business, which it sold to Arris a year and a half later. In an interview with the New York Times, Fadell called Nest a "healthy" business with over 1,100 employees, and in a statement, Alphabet CEO Larry Page Fawaz will help "bring Nest products to even more homes."

Statement from Larry Page/Alphabet:

Under Tony's leadership, Nest has catapulted the connected home into the mainstream, secured leadership positions for each of its products, and grown its revenue in excess of 50% year over year since they began shipping products. He's a true visionary and I look forward to continuing to work with him in his new role as advisor to Alphabet. I'm delighted that Marwan will be the new Nest CEO and am confident in his ability to deepen Nest's partnerships, expand within enterprise channels, and bring Nest products to even more homes.

Statement from Tony Fadell: