On January 23, 2025, HTC announced a definitive agreement with Google to acquire a portion of its engineering team for $250 million in cash, aimed at enhancing the development of the Android XR platform.

This marks the second significant collaboration between the two companies, following Google's $1.1 billion acquisition of HTC's smartphone unit in 2017.

The agreement is subject to customary closing conditions and is expected to finalize by the end of March 2025.

HTC emphasized that this agreement aligns with its strategy to enhance the XR ecosystem and streamline its product portfolio without disrupting support for existing products.

Concerns linger regarding Google's long-term commitment to XR projects, given its history of discontinuing initiatives like Google Daydream.

As part of the deal, Google will gain a non-exclusive license for HTC's XR intellectual property, while HTC retains rights to its technologies and will continue to develop XR headsets.

Android XR is set to benefit from access to a vast library of existing apps on the Play Store, potentially attracting users familiar with Google's ecosystem.

However, the platform may encounter challenges due to the absence of subsidized hardware and tracked controllers, which could limit developer interest.

Both companies have expressed interest in exploring further collaboration opportunities in XR technology moving forward.

The acquisition will strengthen Google's presence in Taiwan, its largest hardware engineering hub outside the United States.

This acquisition comes shortly after Google announced Android XR, a dedicated operating system for virtual and extended reality headsets, with the first devices expected to launch in 2025.

Despite these hurdles, Android XR aims to position itself as a more open alternative to Apple's visionOS, focusing on virtual screens and app integration.