But it’s interesting that this is not done by way of optical recognition. That technology is what Apple, for example, is using in the newest version of iPhoto to look at faces in images and determine if other images contain the same people. Because Google already has its vast database of web images and a lot of metadata thanks to projects like the game in which you tag photos, and more recently, sorting images by color, it has a bunch of different data points it can work with to make Similar Images work.
Source: Google Similar Images First Look



