Google in final talks to acquire eye-tracking startup AdHawk for $15 million

CALIFORNIA, UNITED STATES: Alphabet Inc.’s Google is reportedly in the final stages of negotiations to acquire AdHawk Microsystems Inc., a Canadian company specialising in eye-tracking technology, for $15 million. This acquisition is part of Google’s renewed focus on the development of headsets and smart glasses.

The deal, which includes future payments contingent on AdHawk achieving certain performance benchmarks, is expected to be finalised within this week, although there is still a chance the negotiations could collapse before the agreement is signed. Google has declined to comment on the matter, and AdHawk has not responded to requests for comment.

Founded in 2017 and based in Waterloo, Ontario, AdHawk develops chips, hardware, and software for advanced eye-tracking applications. The company has created a product called MindLink and offers its technology to manufacturers, enabling devices to detect where users are looking.

A key advantage of AdHawk’s technology is its low-power components, which can analyze the user’s cornea and pupils more rapidly than competing sensors.

AdHawk has been actively seeking opportunities in the market and was previously considered for acquisition by Meta in 2022. The startup is backed by the venture arms of major corporations such as Samsung Electronics, Intel, HP, and Sony Group, along with investments from EssilorLuxottica, the owner of Ray-Ban.

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Eye-tracking technology has become increasingly important in augmented and virtual reality headsets. It is a core feature of Apple’s Vision Pro interface and will play a crucial role in Samsung’s upcoming Moohan headset, which is being developed in collaboration with Google. The discontinued Meta Quest Pro also utilized eye-tracking.

Google, a pioneering force in smart glasses technology with the launch of Google Glass over a decade ago, saw limited success with the device, leading to its discontinuation two years ago.

However, the company has expressed intentions to re-enter the smart glasses market, particularly with advancements in artificial intelligence. In collaboration with Samsung, Google has been testing new prototypes of smart glasses for several years.

The development of low-power eye-tracking technology could facilitate the launch of these designs.

In December, Google unveiled Android XR, an operating system intended for use with the Samsung headset and other potential devices. This software includes frameworks that enable developers to integrate eye-tracking capabilities into their applications.

Following the completion of the acquisition, AdHawk’s team is expected to join the Android XR team within Google’s Platform organization. Earlier this year, Google also acquired part of HTC’s XR division for $250 million, enhancing its resources and intellectual property in the area of headsets and glasses.