From a blog post by Google’s Picasa Product Manager:
Neven Vision comes to Google with deep technology and expertise around automatically extracting information from a photo. It could be as simple as detecting whether or not a photo contains a person, or, one day, as complex as recognizing people, places, and objects. This technology just may make it a lot easier for you to organize and find the photos you care about. We don’t have any specific features to show off today, but we’re looking forward to having more to share with you soon.
Neven Vision’s page now redirects to the Google blog post, but a cached copy in The Wayback Machine indicates they’ve been focusing on face recognition technology of late, and C|NET mentions their iScout software for mobile phones that uses images shot with a camera phone to access additional content. (Link via John Battelle’s Searchblog, with some nice extra info at SearchEngineWatch.)