Google Eyes the Future: Strategic Acquisition of AdHawk to Boost Smart Glasses Ambitions

Google (GOOGL.US) is reportedly in the final stages of negotiations to acquire AdHawk Microsystems, a Canadian startup renowned for its eye-tracking technology, marking another strategic move into the smart glasses market. The tech giant plans to invest $115 million in the acquisition, including a conditional $15 million payout dependent on AdHawk achieving specific performance metrics. This agreement is expected to be finalized within the week, although the deal could still face hurdles before being inked.

Founded in 2017, AdHawk has focused on developing chipsets, hardware, and software for sophisticated eye tracking. Its low power consumption components are particularly appealing, potentially outperforming current competitors by analyzing users' cornea and pupil more swiftly. The startup has attracted significant investment from tech heavyweights such as Samsung Electronics, Intel, HP, and Sony, in addition to having partners like EssilorLuxottica SA in the wearable tech sector.

Eye-tracking technology is a vital element in the advancement of AR and VR headsets, arenas where Google's previous efforts were mixed. Known as a pioneer in smart glasses technology with its “Glass” product launched over a decade ago, Google discontinued this line two years ago due to lackluster sales. Since then, it has been exploring opportunities to re-enter the market, propelled by the potential of artificial intelligence, alongside partnerships with Samsung, and years of testing new smart glass prototypes. AdHawk’s cutting-edge technology might allow Google to accelerate its smart glasses launch.

Earlier this year, Google reinforced its commitment to the headset and smart glasses market with a $250 million acquisition of a portion of HTC's XR division, enhancing its pool of engineers and technology assets related to wearables. By integrating AdHawk's promising eye-tracking capabilities, Google is set to advance in the smart glasses domain, possibly reshaping how individuals interact with technology in personal and professional spaces.