Alphabet Considers Giving Nest a New Home Within Google

Google is considering folding home-automation unit Nest Labs into its hardware team, according to people familiar with the talks, reversing one element of Google’s split two years ago into various businesses under holding company Alphabet Inc.

Pulling Nest closer would allow Google to more tightly integrate its services with Nest products as they take on rival Amazon.com Inc. in the home-device market. The Google Home smart speaker trails Amazon’s Echo system, and Amazon recently launched a home-security device that competes...