admin Google LLC has has just paid $1 billion to acquire a startup called Raxium.
The Information, which broke the story, said Google’s acquisition of Raxium is a sign that it’s seriously focused on building the components required to make AR devices a reality.
“Google has struck a deal to buy Raxium, a five-year-old startup that develops tiny light-emitting diodes for displays used in augmented and mixed reality devices,” The Information stated. The deal has not been officially confirmed by either company, also the report adds Google is also looking at more acquisitions related to AR headset components.
Raxium, a startup based in Fremont, California, that develops MicroLED displays used in AR headsets and other devices. MicroLED holds a lot of promise, and it is extremely expensive with large-sized screens.
MicroLED is inorganic, just like LED displays such as high brightness, good color fidelity and high contrast. However, the most important thing is MicroLED’s energy efficiency, which is a key requirement of wearable devices such as headsets.
Raxium, which has yet to introduce any product, has reportedly arise with a more efficient manufacturing technique for MicroLED that may reduce production costs.
The Information stated Google is buying Raxium so it can integrate its MicroLED displays with its latest AR headset. It’s believed that Google is currently working on such a device, codenamed Project Iris, and hopes to ship it sometime in 2024.
Pund-IT Inc. analyst Charles King said SiliconANGLE that the Raxium deal plays into Google’s longer-term efforts around AR.
“Remember that the company was one of the first vendors to enter the space,” he noted. “But what’s less known is that after the controversial launch of Glass as a consumer device, Google shifted its focus on AR to workplace solutions and has notched a series of important wins in areas, including healthcare, since then.”
He said, “how the acquisition might improve and push forward Google’s broader, business-focused AR strategy, If Raxium’s display technology is as good as the rumored $1 billion price suggests, it could be a very big deal for Google and a wakeup call for its competitors.”
Previously, Google acquired Canadian smart glasses startup North Inc. done a deal valued at $180 million as per reports. The transaction accepted Google a technology developed by North that uses a laser projector attached to the frame of an AR headset to display content for users.
However, Meta Platforms Inc., the parent company of Facebook, which is stated to be working on a new device called Project Cambria, in addition to its existing Quest 2 virtual reality headset. Also, Apple Inc. is stated to be working on a mixed-reality headset and a pair of AR glasses.
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