Alphabet, the newly formed parent company of Google, plans to charge its internal startup companies like Google X and Google Life Sciences for using corporate services in an effort to boost financial accountable and remain self-sustaining, according to a Wall Street Journal report.
People familiar with the situation told WSJ said Alphabet executives hope having these "bet" companies responsible for some of the costs will make them more accountable for them, and possibly curb spending.
"After a period of big expense build up, there was an appreciation that we needed to manage the cadence of spend," said Ruth Porat, CFO of Alphabet, in an October earnings call, according to the report.
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