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The restructuring frees the founding duo from the nitty-gritty details of running the massive company, instead allowing them to focus on exploring inventive new "moon shot" projects and ideas.
The device, as described by Bloomberg, is the product of Google X, the experimental group within the search giant that is responsible for some of its more noteworthy "moon shot" projects, including Google Glass, its driverless cars and Project Loon.
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Some well-shot projects however do an excellent job simulating it.
"These moon-shot projects are a very Google-y thing for them to do," said Colin W. Gillis, an analyst at BGC Partners.
The company, Calico, was conceived and backed by Google, whose co-founder and chief executive, Larry Page, portrayed it as one of the company's long-shot projects, like self-driving cars.
They're not just trying to make money: they're trying to use that money on far-fetched moon-shot projects with the chance to be genuinely revolutionary.
Dugan presented onstage at Facebook's F8 conference this year, talking about some of the company's more long-shot projects, like embeddable brain sensors that could promote a more tight interface with hardware products.
At the same time, Obama hadn't abandoned his dream of a moon-shot project.
But it's not a one-shot project.
Google has announced another moon-shot project: Calico -- setting a course to solve the riddles of aging and death.
At one party, the feed from the toilet-cam, positioned for an anatomical shot, was projected live on screens in the loft.
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