Alphabet’s Sidewalk Labs Nixes Toronto Waterfront Project

Alphabet’s smart city division, Sidewalk Labs, is walking away from its Toronto waterfront redevelopment initiative. CEO Daniel Doctoroff said the project’s financial viability was threatened by “unprecedented economic uncertainty.”

What could’ve been: Sidewalk Lab’s proposed "Idea District" in Quayside, Toronto, was a proof of concept for futuristic urban living, weaving data-harvesting digital infrastructure into a mixed-use neighborhood. Toronto and Sidewalk Labs negotiated the deal last November after the Alphabet unit agreed to concessions on privacy, prices, and real estate.

From the Toronto project’s ashes comes a similar-sounding Alphabet offshoot: Sidewalk Infrastructure Partnership (SIP). With two Google vets as co-CEOs, SIP announced a $400 million Series A yesterday, led by Alphabet and the Ontario Teachers Pension Plan.

• Structured as a holding company, SIP will invest in startups focused on tech infrastructure issues, the “circular economy,” and mobility.

Bottom line: While this is a huge setback for Sidewalk Labs, don’t expect tech companies to stop thinking about how to build the future of cities.