My personal take is that one of the reasons is their posture against ML. They've been very "GOFCT" and have only recently started to incorporate ML concepts.
But as a flip side of this, Boston Dynamics developed certain idiosyncratic interests in getting the hydraulic valves just right, etc. Their machines required a lot of tender care, (expensive!) and were dangerous to be around.
When Google acquired them, many things were mismatched. Andy Rubin, the VP at Google who advocated for BD, got fired for alleged sexual misconduct. This cast a shadow on the whole plan that he was trying to implement. DARPA finding did not sit well with Google's ethics. They pushed BD to stop getting grants from DARPA.
Expensive and dangerous robots were not an ideal fit for AI experimentation. Google was buying cheap and much safer tabletop robots for that. All in all, there was no good fit, and after spending tons of money on it, Google have gotten rid of them. They did encourage BD to develop a cheaper, safer electric robot, and this became Spot Mini.
Well...there is the uncanny similarity to the T-800 and and uneasy realization that the owner of BD could become Cyberdyne Systems IRL. Perhaps some companies like that notoriety but not sure if many want that.
This seems like a small correction if they wanted to reacquire and clearly the market isn't valuing BD all that high.
Why do you think it's one of Sundar's biggest mistake?
But imagine: robotics cred of BD combined with AI chops of GDM. It would have been something. Turns out, internally, GDM has robots they're training, experimenting on, etc even today. So why dump BD and lose that platform?
