Apple's AR Glasses Approach Aside, Google Makes Its Move On Eye-Tracking Tech With $115 Million AdHawk Acquisition: Report

As Apple Inc. (NASDAQ:AAPL) reportedly rethinks its strategy for AR wearables, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is doubling down with a possible $115 million acquisition of eye-tracking startup AdHawk Microsystems.

What Happened: Google is in final talks to acquire AdHawk, a Canadian startup specializing in advanced eye-tracking hardware and software, reported Bloomberg on Tuesday, citing people with knowledge of the matter.

The reported deal includes $15 million in performance-based payments and is expected to close this week.

See Also: Eddy Cue Praises ‘Severance’ For Breaking Through The Noise Globally, Says Apple TV+ Isn’t Going To Throw 20 Shows On The Wall Hoping One Will Stick

Founded in 2017, AdHawk developed MindLink smart glasses and low-power components that can track eye movements.

AdHawk's staff is expected to join Google's Android XR team, the report noted. Google's team is already working on software for next-gen headsets, including a joint device with Samsung Electronics Co. (OTC:SSNLF). 

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Why It's Important: The acquisition underscores Google's renewed focus on augmented reality. In 2023, the tech giant had halted the sales of its Google Enterprise smart glasses and discontinued software support.

Meanwhile, AdHawk has been available in the market for several years. In fact, in 2022, Meta Platforms, Inc. (NASDAQ:META) explored the possibility of acquiring it.

Apple is also said to be exploring a new design for lightweight glasses by 2030 after the Vision Pro's lukewarm reception. 

Price Action: As of this writing, Alphabet's Class A shares rose 0.11% in after-hours trading to $164.23, while Class C shares climbed 0.096% to $166.14. Apple's stock closed Tuesday's regular session at $220.84, down 2.92%, but edged up 0.10% in after-hours trading, according to the data from Benzinga Pro.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Image via Shutterstock

Read Next:

• Apple Delays Next-Gen Siri: ‘It's Going To Take Us Longer Than We Thought' To Deliver AI Upgrades