Google Plans Acquisition of Eye-Tracking Startup to Enhance Android XR Hardware Development

Google appears to be on the brink of acquiring AdHawk Microsystems Inc., a Canadian company specializing in eye-tracking technology. This strategic move would bolster Google’s ongoing ventures into the world of XR headsets and glasses.

According to Mark Gurman from Bloomberg, insiders reveal that Google plans to purchase AdHawk for a sum of $115 million. Additionally, there are $15 million in future payments tied to the company achieving specific performance milestones. Although the acquisition could potentially be finalized this week, it’s important to note that a formal agreement has yet to be signed, leaving some uncertainty in the air. If the deal proceeds, AdHawk’s team is expected to merge with Google’s Android XR division.

Interestingly, this isn’t AdHawk’s first encounter with a major player in the XR sector; in 2022, reports indicated that Meta was also close to acquiring the company.

AdHawk is renowned for its cutting-edge eye-tracking solutions, which forego traditional cameras in favor of micro-electromechanical systems (MEMS). This approach enhances processing speed and minimizes power consumption, features highly sought after by developers of AR and smart glasses today.

One of AdHawk’s signature products, the MindLink glasses, focuses on research applications. It aims to link eye movements with insights into neurological and ocular health, human behavior, and mental state, according to their website. Additionally, their camera-free eye-tracking modules are available for researchers working with VR platforms, such as Meta Quest.

Though neither Google nor AdHawk have formally commented on the acquisition reports, Google has been ramping up its XR division, vying to compete with giants like Meta and Apple.

In December, Google unveiled Android XR, signifying a pivotal change in its XR strategy by integrating a complete version of Android into headsets for the first time. This new Android XR will encompass XR-specific applications alongside the full range of Android content. It is poised to debut with Samsung’s Project Moohan mixed reality headset, which remains without a confirmed release date or price.

Furthering its commitment, in January, Google announced the recruitment of several seasoned XR engineers from HTC for $250 million. This transition was said to accelerate development of the Android XR platform across both headsets and glasses.

Bringing AdHawk’s innovative eye-tracking technology into its fold could significantly enhance Google’s internal XR hardware development, a field in which its efforts have been somewhat fragmented over the years. The company has previously canceled several XR initiatives, including the Daydream VR platform in 2019, Google Glass for Enterprise in 2023, and the Iris AR glasses project in 2024.