Meta Platforms, Inc. is planning to commence testing of an artificial intelligence-powered pendant next year. This ambitious roadmap for wearable device development aims to reverse the substantial ongoing losses within its hardware division. Internal planning documents indicate the company intends to significantly expand its smart AI glasses product line and introduce a service offering for businesses called "Workplace Wearables." The memo, authored by Alex Himel, Meta's Vice President of Wearables, states that part of the strategic goal is to drive adoption of its AI models and related products, including subscription services and the consumer-grade smart assistant named Hatch, which is currently under development. Meta is currently competing with tech giants like OpenAI and Alphabet in a race to launch new smart hardware devices, hoping to boost usage of their respective AI services. Beyond in-house development, Meta has also engaged in acquisitions, purchasing the AI pendant startup Limitless Intelligence last year. Investors have long pressured Meta to improve the performance of its Reality Labs division, which handles consumer hardware. This unit has accumulated losses totaling tens of billions of dollars over the years. The company's previous bets on the metaverse and virtual reality headsets have yet to yield significant returns. As its strategic focus shifts toward AI-powered wearables, Meta has discontinued or scaled back several hardware projects, including the video calling device Meta Portal. Despite positive initial market reception for its smart glasses, Reality Labs remains in the red. Meta's financial reports show the division generated only $402 million in revenue last quarter while incurring an operating loss exceeding $4 billion. Meta now hopes to establish a recurring revenue stream through subscription services for its Meta AI chatbot. This week, the company announced a two-tier subscription plan for this AI chatbot available on Facebook, Instagram, and WhatsApp, with these subscription services also extending to its smart AI glasses. Himel wrote in the memo, "To build a sustainable business beyond hardware profits, we must commercialize through differentiated device software experiences." The memo reveals aggressive targets: Meta aims to sell 10 million wearable devices in the second half of this year through new product launches and market expansion, and strives to reach 6.8 million monthly active users for its wearables by year-end. Eyewear manufacturer EssilorLuxottica stated in February that sales of its smart glasses developed in partnership with Meta had surpassed 7 million units in 2025. Meta CEO Mark Zuckerberg said last month that daily active users for its AI glasses had tripled year-over-year. Following the company's quarterly earnings report, he posted on Facebook, "This product remains one of the fastest-growing categories in consumer electronics." The memo did not disclose specific technical specifications for the new AI pendant, though the device is expected to feature a camera. The company plans to begin internal testing in the spring of next year. Meta also plans to diversify its proprietary eyewear lineup, moving beyond the previously launched Ray-Ban and Oakley smart glasses developed with EssilorLuxottica. The memo mentions plans to add more partner brands and styles, expanding the consumer hardware portfolio to broaden its audience and improve gross margins. The first model this year, codenamed "Modello," is expected to launch as early as next month. New products codenamed "Luna" and an "RBM2 iteration" are scheduled for release in the fall, with a fourth model, "Mojito Premium," slated for December. Additionally, several internal prototypes, including those codenamed "Artemis" and "Hyperglasses," will undergo internal testing this fall in preparation for future releases. The memo notes that these glasses and future new products will be equipped with Meta's latest AI model, Muse Spark, its subsequent iterations, and the yet-to-be-released smart assistant Hatch. As per the plan, the company will also launch a wearable device developer platform for developers to create applications for the devices. The new "Workplace Wearables" service primarily targets enterprise clients. Himel stated that business users are willing to pay for hardware with specialized vertical functionalities. The team's goal is to secure pilot partnerships with at least 10 companies and complete deployments at a minimum of two large organizations, each with over one hundred connected devices. Competition in the AI hardware space is intensifying. OpenAI invested $6.5 billion to acquire io Products, co-founded by former Apple designer Jony Ive. Reports indicate that earlier this year, OpenAI had a team of over 200 people developing a full range of AI hardware, including a smart speaker expected to be priced between $200 and $300. Alphabet has also announced plans to launch smart glasses in collaboration with Samsung this fall.
Comments