Google is nearing the end of talks to acquire AdHawk Microsystems Inc., a maker of eye-tracking technology, in a deal that could be part of the company's new push into headsets and smart glasses, Bloomberg reports .
Canadian startup AdHawk was founded in 2017 and is engaged in the production of chips, hardware and software for tracking eye movements. Among other things, the startup develops MindLink glasses and offers technology to manufacturers to determine where users are looking. AdHawk's main advantage is the use of low-power components that analyze the cornea and pupils of users faster than competitors.
According to sources familiar with the deal, Google intends to acquire the startup for $115 million. The deal includes $15 million in future payments, which will depend on AdHawk achieving key performance indicators. There is a possibility that the deal will be completed this week, but there is also a possibility that it will not happen. Representatives of both companies declined to comment.
The technology AdHawk is developing is essential for creating augmented and virtual reality headsets, which has made the startup attractive to many companies. In 2022, Meta was considering acquiring AdHawk, whose investors include venture capital units from Samsung, Intel, HP, Sony, Ray-Ban owners EssilorLuxottica, and others.
Google, which first introduced Glass in 2014, has been out of the industry for a while, but has been making a comeback recently. The company has unveiled its Android XR operating system for augmented and virtual reality headsets and is working with Samsung on a rival to the Apple Vision Pro, Project Moohan.
Additionally, Google has spent the past few years testing new prototypes of smart glasses, and using the energy-efficient components that AdHawk specializes in could help with that process. If the deal is completed, the startup's employees will join the Android XR team.
We remind you that in early 2025, Google acquired HTC's XR business for $250 million.