Alphabet Inc.’s Google is reportedly in the final stages of acquiring AdHawk Microsystems Inc., a Canadian developer of eye-tracking technology, for $115 million. The move signals Google’s renewed push into smart glasses and headset technology, according to sources familiar with the deal.

Google has a history in smart glasses development, having launched Google Glass more than a decade ago. Despite several iterations, the device failed to gain commercial success and was discontinued two years ago.

Now, with advancements in artificial intelligence and AR/VR technologies, Google appears ready for a comeback in the smart glasses market.

AdHawk’s Cutting-Edge Eye-Tracking Technology

According to a report by Bloomberg, the acquisition deal includes $15 million in performance-based payments and is expected to close this week.

AdHawk, founded in 2017 and based in Waterloo, Ontario, specializes in low-power eye tracking chips and software. Its MindLink glasses and related technology allow faster analysis of pupil and cornea movements compared to competitors.

Eye-tracking has become a critical feature in AR/VR headsets, with companies like Apple and Samsung integrating similar technology into their devices. Apple’s Vision Pro and Samsung’s Moohan headset, developed with Google, have already emphasized the importance of eye-tracking for immersive experiences.

How Google Will Use AdHawk’s Technology

Google plans to integrate AdHawk’s technology into its Android XR operating system, designed for augmented reality (AR) and virtual reality (VR) headsets.

Following the acquisition, AdHawk’s entire team is expected to join Google’s Android XR division within the Platforms organization.

Google’s Expanding Investments in AR/VR

This deal comes after Google previously considered acquiring AdHawk’s technology rival, and Meta also explored buying the company in 2022.

Google has been expanding its AR/VR expertise, with previous acquisitions like a portion of HTC’s XR division for $250 million. The latest purchase of AdHawk would strengthen Google’s position in the growing headset and smart glasses market.

What’s Next for AdHawk Microsystems?

AdHawk, backed by Samsung, Intel, HP, and Sony, will now operate under Google’s leadership.

The acquisition could allow Google to develop more competitive AR/VR products, leveraging AdHawk’s low-power eye-tracking technology to improve Google’s next-generation smart glasses and headsets.

While talks could still collapse, sources indicate that the deal is nearing finalization. If completed, this acquisition would mark Google’s latest move in reclaiming dominance in the AR/VR space, competing with Apple, Meta, and Samsung.