Google reportedly looking at smart glasses — again

After abandoning its Google Glass smart glasses in 2023, Google seems ready to take another kick at the can with what will reportedly be a $115 million acquisition of Canadian startup AdHawk Microsystems.

AdHawk has developed camera-free, MEMS-based eye-tracking technology that offers an accurate, low-latency view of where the user is looking, using considerably less power than camera-based systems. The company designs and produces all of the system’s components, “from silicon to cloud” —  the chips and micro optics, the hardware, with reference designs, and the algorithms and software necessary to make it all work.

Bloomberg reported on the potential acquisition Tuesday, citing “people with knowledge of the matter” who had asked not to be identified. “The agreement is on track to be completed this week, but it’s still possible that the talks could fall apart at this late stage because the deal hasn’t been signed,” Bloomberg reported.

Neither Google nor AdHawk responded to a request for comment.

Waterloo, Ontario-based AdHawk was founded in 2017 and received funding from the venture arms of tech giants including Intel, HP, Samsung, and Sony Group. It offers several products as well as its components, and touts its MindLink and MindLink Air glasses as a way for researchers and neurologists to examine the eye-brain connection.

The technology is also a vital component of both augmented reality (AR) and virtual reality (VR) headsets. In December 2024, Google introduced Android XR, an operating system that will work on Samsung’s upcoming Moohan headset and other devices. It includes frameworks to let developers embed eye tracking in their software.

“The broader smart glasses market is heating up,” noted Julie Geller, principal research director at Info-Tech Research Group. “But let’s be real—consumer adoption of AR wearables has been slow. Companies are still refining the use cases, and eye-tracking could be the missing piece that finally makes these devices feel seamless—whether for navigation, content interaction, or even real-time ad targeting without intrusive gestures.”

“Adhawk is one of the few independent third-party solutions,” said Anshel Sag, principal analyst at Moor Insights & Strategy, “but it hasn’t been as prominent in the market as some of the others that have been acquired.”  

Geller found the deal interesting on another front.

“The AdHawk acquisition deal is particularly interesting since it employs MEMS (Micro-Electro-Mechanical Systems) technology to track eye movement without relying on traditional cameras,” she said. “This allows for a more efficient and precise system, requiring far less data while delivering higher sampling rates.”

Another noteworthy facet of the potential acquisition is the price, Geller said. “AdHawk, a Canadian company behind some of the most advanced eye-tracking technology, is being acquired at what seems like a modest valuation, given its potential impact.”

“The structure of the deal also tells us something,” she added. “Google is reportedly acquiring AdHawk for $115 million, with $15 million tied to future performance. A structure like this—where only about 13% of the deal value is contingent—suggests Google has strong confidence in the company’s technology but wants to ensure its long-term viability in the market. What stands out is that, despite the relatively low price for a company pioneering high-efficiency eye-tracking, Google isn’t over-relying on the earnout to hedge its risk. That suggests they see AdHawk as a foundational piece of their AR and advertising strategy rather than just an experiment.”

Sag added that since Google is one of the few companies that doesn’t have an eye-tracking system of its own, “it makes sense why the company would go out and get Adhawk. That said, this is a much different solution than most other eye-tracking camera-based systems and could enable some unique applications, but [it] could also limit Google’s application of eye-tracking.”

Eye tracking for AR enables better visual acuity and calibration, which can reduce eye strain as well as being used as a biometric authentication method, Sag said. It also makes better user interface experiences possible. 

But it’s not just about a better user interface, Geller said: “Let’s not pretend this is just about a better AR experience,” she said. “Eye-tracking might just be the ultimate attention metric, and attention is the currency of digital advertising. If Google can track exactly where users look (and for how long), it could completely reshape ad attribution, engagement, and targeting.”

Sag agreed, noting, “there are also heavy privacy implications of eye-tracking, which I believe most companies have done a good job addressing so far,” he said. “Most raw eye-tracking data stays on-chip, and no biometric data leaves the device.”

A competitor, Tobii, already uses glasses with eye tracking in consumer scenarios to monitor eye movements in controlled environments; Sag believes Google could also use consumer data “in very compelling ways” — as long as it’s careful about how it manages user privacy and biometric data. 

As for the business world, he said, the sky’s the limit.

“I believe the business use cases are virtually unlimited and that AI will be a strong driver of making these AR experiences compelling and financially successful,” Sag said. “Its’ why I believe AR will inevitably surpass VR and MR in market size.”

This story has been updated with additional analyst commentary.