Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
Alphabet Inc‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and augmented reality startup Magic Leap have entered into a strategic partnership aimed at creating immersive experiences that integrate the physical and digital realms.
The collaboration, confirmed by both companies, marks Google’s renewed interest in the augmented and virtual reality (AR/VR) market, which has been dominated by Meta Platforms Inc. (NASDAQ:META) and Apple Inc. (NASDAQ:AAPL).
Magic Leap highlighted that the partnership would leverage its expertise in optics and device manufacturing alongside Google’s advanced technology platforms.
The collaboration could potentially yield new innovations, although specific details remain scarce, according to a report from Reuters.
Julie Larson-Green, Chief Technology Officer of Magic Leap, emphasized the synergy between the two companies. “We’ve shipped various versions of augmented reality devices, and Google has a long history with platform development.
Together, we see a lot of potential,” she said.
Google’s investment in Magic Leap, which is primarily owned by Saudi Arabia’s Public Investment Fund, signals a significant strategic move.
Although Magic Leap initially struggled to find a consumer market for its AR headsets, it has recently pivoted towards licensing its technology and producing components for other companies.
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Both Google and Magic Leap have refrained from confirming whether their partnership will result in a consumer AR device. Google’s collaboration with Samsung Electronics Co Ltd on mixed reality technologies, initiated last year, remains unchanged by this new agreement.
Larson-Green expressed enthusiasm about integrating some of Google’s latest AI advancements with augmented reality. At Google’s recent developer conference, the company showcased Project Astra, an AI agent demonstrated through a glasses prototype that could answer questions about the wearer’s surroundings in both audio and digital text formats.
This technology mirrors the functionality seen in Meta’s Ray-Ban Meta Smart Glasses.
Google’s history with AR technology dates back over a decade to the launch of Google Glass, which initially promised an AR revolution but faced backlash over design and privacy issues, leading to its retreat from the market in 2015.
However, the company previewed new AR glasses two years ago, capable of real-time language translation, signaling its persistent interest in the field.
In January, Google’s AR efforts faced a setback with layoffs in its hardware division, casting uncertainty over its future projects.
Alphabet stock has gained more than 39% in the last 12 months. Investors can gain exposure to the stock via the Communication Services Select Sector SPDR Fund (NYSE:XLC) and Vanguard Communication Services ETF (NYSE:VOX).
Price Action: GOOGL shares are trading lower by 1.71% at $172.89 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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