This means Google is just one company under the Alphabet umbrella, and the new structure allows all of the company's various arms to operate more quickly and independently.
The change divides Google's projects and businesses into companies under Alphabet (i.e. Google, Calico, Life Sciences, etc.).
However, Eric Schmidt, the company's executive chairman and former CEO of Google, says Alphabet is only in its early stages and there are a lot more Alphabet companies to come.
Re/code obtained a recording of Schmidt speaking at the Virtuous Circle conference, a summit on tech and policy hosted by the Internet Association. During the talk, he suggested that we'll see more subsidiaries form within Alphabet.
"After 26, we're going to probably transcendental numbers," Schmidt said according to Re/code. "You think I'm kidding?...I've been meeting with the current CEOs of the Alphabet companies and the proposed ones. So you'll see a lot coming."
Schmidt also said that the company is still figuring things out when it comes to Alphabet.
"I wake up, and I'm the chairman of Alphabet," Schmidt also said at the conference. "We sort of announced it without actually knowing which companies it would be. So we're still working the details."