Google has shown a lot of interest in computer vision over the last few years. You need only look at the way it digs around for similar images in Google search and identifies specific objects in your uploaded photos. It can always be better, though, so Google has purchased a French company called Moodstocks that specializes in image recognition.
Moodstocks has been around since 2008, working to improve image recognition on mobile devices. The company says its dream was to make the camera on your phone a "smart sensor" that could provide information about the world around you. The company toyed around with an app that lets you take photos of items like books and movie posters to add annotations, which would then be synced with other users' annotations via image recognition.
Most of Moodstocks' current activities seem to revolve around its API and SDK, but those will be going away in the wake of the sale. There's no specific date, but developers should start looking elsewhere. We don't yet know if Google will use Moodstocks for some specific purpose, or if its technology will simply be merged into existing products. The details of the sale were also not disclosed.