Google and Magic Leap have announced a new strategic partnership aimed at developing advanced extended reality (XR) technologies. This collaboration, surprising given both companies' past failures in the augmented reality (AR) space, aims to reignite competition in the metaverse hardware market, particularly against leaders like Apple and Meta.

Magic Leap, infamous for one of the biggest flops in AR history, will bring its expertise in optics to the table. Google, having recently downsized its AR/XR teams, will provide its robust technological infrastructure. Despite this reduction, Google's involvement suggests a renewed interest in dominating the AR/XR landscape.

Julie Larson-Green, Magic Leap's CTO, emphasized the potential of this partnership, stating, "This collaboration accelerates AR's transformative power by merging our advanced optics with Google's technologies, enhancing immersive experiences for developers and consumers alike. We are eager to expand XR’s potential, blending the physical world with valuable, contextually relevant solutions."

The official announcement, however, was light on specifics regarding new products or services. Industry watchers speculate that a new AR/XR headset could be in the works, potentially heating up competition with Meta and Apple.

Critics, including The Verge’s Sean Hollister, question what Google stands to gain from this deal. Despite Google's track record of successful hardware, its forays into AR/XR, notably Google Glass, have been lackluster. The speculation is rife that Magic Leap might possess a patent or unique technology that Google finds irresistible. Alternatively, Google may be leveraging this partnership to avoid the cost of rebuilding its AR/XR division post-layoffs, while also ensuring it doesn't fall behind its competitors.

This partnership, blending Magic Leap's optical innovations with Google's tech prowess, could signify a major shift in the metaverse market. If successful, it might finally provide the much-needed breakthrough for AR/XR technologies and intensify competition among tech giants.