Facebook buys CTRL-Labs, which makes a bracelet that measures neuron activity to detect movements the user is thinking about; sources: size of deal is $500M-$1B

- CTRL-Labs is said to fetch $500 million to $1 billion — Facebook may one day pair the technology with AR or VR glasses

Bloomberg 2019-09-24 Kurt Wagner

Context & Ripple Effects

CTRL-labs had spent the year before this deal raising outside money for the same idea — a $28M round in February 2019 for its armband and SDK that translate brain-to-muscle impulses into digital gesture signals. Seven months later Facebook is paying a reported $500M-$1B for the company, a step change from venture-scale funding to platform acquisition.

The buyer's intent is explicit: pairing the bracelet with AR or VR glasses. That thesis has since hardened into Facebook's stated roadmap — a 10-year AR glasses vision that pairs the display with a gesture-reading wristband and haptics, and a neural wristband reading signals from brain to hands that Andrew Bosworth has had to defend as not 'reading your brain'.

First-order effects

Facebook acquires CTRL-labs' team and its neuron-activity bracelet outright, gaining in-house the gesture-input layer it would otherwise have had to license — and removing the startup from the market for other AR/VR hardware makers.
CTRL-labs' prior backers exit at a reported $500M-$1B, roughly an order of magnitude above the startup's last private valuation trajectory after its $28M round.

Second-order effects

Rival AR/VR players now face an input problem: if Facebook's glasses ship with a wristband that turns intended movement into control, competitors must either buy or build equivalent neural-muscular interfaces rather than rely on cameras and hand tracking alone.
The deal pulls biosignal sensing from research demos toward consumer shipping hardware, forcing Facebook to answer the privacy questions Bosworth later addressed head-on when the wristband work became public.

Third-order effects

Facebook has since killed its head-mounted brain-typing project and consolidated on the wrist controller, suggesting the acquisition's durable legacy is a wristband input standard for AR rather than direct brain interfaces — input migrating from touchscreens to muscular and neural signals read at the wrist.
If wristband gesture control becomes the default way AR glasses are operated, control over that input layer becomes a strategic chokepoint in the AR platform stack, the way touch and app stores were for smartphones.

The trend: Big platforms are buying neural-interface startups to own the input layer of AR/VR hardware, with wrist-worn biosignal readers beating head-mounted brain interfaces as the near-term form factor.

Discussion

@ctrllabsco CTRL-labs on x
Today we're thrilled to share that Facebook has agreed to acquire CTRL-labs. Our team is excited to join @boztank and his group Facebook Reality Labs to empower people with non-invasive neural interfaces at scale. https://twitter.com/...
@boztank Boz on x
We know there are more natural, intuitive ways to interact with devices. And we want to build them. It's why we've agreed to acquire CTRL-labs. They will be joining our team where we hope to build this kind of tech at scale. More on the team and their tech https://www.facebook.co…
@wolfejosh Josh Wolfe on x
Truly LOVE, LOVE these founders— what a thrill to get to sit on Board with Reardon + Patrick & entire @CTRLlabsCo team— a front seat to INCREDIBLE science, incredible engineering making real a toally CREDIBLE future for us all 💻🧠🤯 https://twitter.com/...
@carolecadwalla Carole Cadwalladr on x
Oh. Look at that. Facebook's newest venture: harvesting thoughts https://twitter.com/...
@kurtwagner8 Kurt Wagner on x
Lots of potential use cases for this: Imagine having AR glasses that you can then control hands-free. Or VR gaming. Or something medical-related? A long way off (probably) but interesting
@chadshoopguru Chad Shoop on x
The whole sci-fi idea about connecting humans to computers that @elonmusk has been working on is closer than we think. $FB is latest news to show the tech minds see this as the future. Elon's @neuralink plans to conduct human tests next year. Look out! https://www.cnbc.com/...
@lorakolodny Lora Kolodny on x
CNBC visited CTRL Labs last summer — not at all surprised the company got snapped up. A new frontier for human computer interaction. https://www.youtube.com/... https://twitter.com/...
@eringriffith Erin Griffith on x
facebook doing any acquisitions, let alone billion-dollar ones, at this moment, seems... bold! https://www.cnbc.com/...
@sutiandong Sutian Dong on x
Congrats to @jduyan, Reardon, and the @CTRLlabsCo team on their exit to @facebook! CTRL is building a future where devices will operate as a natural extension of movement & control happens “using an imperceptible movement or just by, well, intending to.” https://www.cnbc.com/... …
@ryanfduffy Ryan Duffy on x
I tested a CTRL Labs wristband prototype ~2 weeks ago. Could do some nifty tracking of hand position, gestures, finger motion, etc... But some tests were finicky and still a bulky form factor Surely the R&D / hardware shrinking will accelerate now https://twitter.com/...
@hks55 @hks55 on x
Sure. A website made for friends to easily keep in touch now getting into brain computing. I wish there were signs of a top. https://twitter.com/...
@katienotopoulos Katie Notopoulos on x
As someone with wrist pain from too much phone and mouse, I personally welcome Facebook to read my spinal cues and activate the device without moving my hand. https://twitter.com/...
@jwangark James Wang on x
Antitrust? What antitrust? https://www.bloomberg.com/...
@zerohedge @zerohedge on x
Facebook to Buy Startup for Controlling Computers With Your Mind: BBG Because typing is too exhausting and creates a lot of CO2
@erinbiba Erin Biba on x
It's a FUCK NO FACEBOOK from me. https://twitter.com/... https://twitter.com/...
@jason_kint Jason Kint on x
If you're human, you don't want @Boztank or anyone remotely close to his operation near your neurons. Trust me. The case is clear. https://twitter.com/...
@bluelantern92 BlueLantern on x
So much to unpack: 1. Last I heard CTRL-Labs only had an armband that interpreted electrical impulses on muscle. 2. Also they weren't into “Brain implants” due to noise in brain activity. How do they harness “thought”? 3. How did they come up $500 MM -$1B as the cost? 🧐 https://t…
@business @business on x
JUST IN: Facebook has agreed to acquire CTRL-Labs, a startup that is building software to let people control a digital avatar using only their thoughts, at a cost of between $500 million and $1 billion https://www.bloomberg.com/... https://twitter.com/...
@dmitry140 Dmitry Shevelenko on x
Profitability = Optionality and the inverse is even more true. CTRL-Labs has years of losses ahead of it, and with a looming recession, not betting on endless ability to fundraise is the responsible choice, but unlikely the outcome the founders dreamed of. https://twitter.com/...
@oliviasolon Olivia Solon on x
“It captures your intention so you can share a photo with a friend using an imperceptible movement or just by, well, intending to.” This sounds like tech that hasn't found a worthwhile application (or it has, but FB isn't disclosing it) https://www.bloomberg.com/...
@mattrosoff Matt Rosoff on x
Facebook buys start-up that received funding from Alphabet and Amazon. Who says there's no competition in tech? https://www.cnbc.com/...
@azeem Azeem Azhar on x
That sucking sound you hear is Facebook ingesting the brilliant Ctrl-Labs. Great for them, disappointing for the rest of us. Facebook needs to inveigle itself into our lives less, not more. https://twitter.com/...
@ow Owen Williams on x
absolutely nothing creepy about this at all https://www.bloomberg.com/...
@ejn Erik Nordlander on x
Big news from @CTRLlabsCo today! It has been a huge thrill to serve on the board of a company completely reimagining how we interact with technology. Huge congrats to Reardon, Patrick and the whole team. https://www.cnbc.com/...
@kentbye Kent Bye VoicesOfVR on x
Facebook has acquired @CTRLlabsCo, which makes EMG neural interfaces tracking finger movement through your arm muscles. Definitely a part of the future 3DUI & UX. I featured them an interview I did at the @CIFAR_News Future of Neuroscience & VR workshop. https://voicesofvr.com/..…
@wokyleeks Waffle Woky on x
Facebook bought a brain-computer interface start-up. This can't be good. @thespybrief @gametheorytoday @ericgarland @MingGao26 https://www.cnbc.com/...
@mgsiegler M.G. Siegler on x
Just a truly exciting, mind-bending company. It has been a privilege to have been along for this early part of the ride in a small way. Savvy move, @facebook 🧠✋🤖🚀 /cc @gvteam https://twitter.com/...
@joshconstine Josh Constine on x
How augmented reality goes mainstream: low-key glasses controlled by an armband. Smart of Fb to acquire Ctrl-Labs that owns Myo https://techcrunch.com/...

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