Google, which acquired London-based artificial intelligence lab DeepMind in 2014, said on Tuesday that the DeepMind Health brand, which uses NHS patient data, will cease to exist and the team behind its medical app Streams will join Google as part of Google Health.
It comes just months after DeepMind promised never to share data with the technology giant and an ethics board raised concerns over its independence.
A separate research team at DeepMind will continue to function independently of Google, but under the umbrella of its parent company Alphabet.
A DeepMind spokesman said: "All patient data remains under our partners' strict control, and all decisions about its use lie with them."
DeepMind health has already come under scrutiny from data watchdogs in the past. Last year, the Royal Free hospital in London was found to have breached the Data Protection Act over its handling of NHS patients' data when using the Streams app, which was developed by DeepMind.
Streams is an application that aims to help doctors spot patients who may develop kidney disease. It was developed using data from the Royal Free Hospital.