On January 23, 2025, HTC announced a definitive agreement with Google valued at $250 million, which involves the acquisition of a portion of HTC Vive's engineering team.

This strategic move aims to enhance the development of the Android XR platform, marking the second significant collaboration between the two companies, following Google's $1.1 billion purchase of HTC's smartphone unit in 2017.

As part of the deal, Google will receive a non-exclusive license for HTC's XR intellectual property and will gain access to some of HTC's engineering staff, while HTC retains rights to its technologies.

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

The agreement comes shortly after Google announced Android XR, its standalone XR operating system, with the first devices expected to launch in 2025.

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

Despite facing challenges such as the lack of subsidized hardware and tracked controllers, Android XR aims to position itself as a more open alternative to Apple's visionOS.

HTC's operating system currently lags behind Meta's Horizon OS, which boasts a more extensive software catalog, affecting HTC's market appeal.

HTC emphasized that this agreement aligns with its strategy to enhance the XR ecosystem while continuing to support its existing product lines.

HTC will maintain its independence in operating the VIVE business and has announced the upcoming $999 Vive Focus Vision headset, aimed at enterprise and gaming markets.

HTC has a history of innovative headset designs, including the HTC Vive XR Elite and the recently launched Vive Focus Vision, though both have faced commercial struggles.

Both companies expressed interest in exploring additional collaboration opportunities in XR technology, signaling a commitment to future partnerships.