- Meta increased its augmented reality investment by acquiring a stake in EssilorLuxottica to strengthen its smart glasses market presence.
- The second-generation Ray-Ban Meta smart glasses enhanced everyday wearable technology with advanced AI.
OUR TAKE
Meta Platforms is negotiating a strategic investment to acquire a 3% to 5% stake in EssilorLuxottica SA, the world’s leading eyewear manufacturer and the brains behind Ray-Ban sunglasses. This acquisition shows Meta’s commitment to expanding into the smart glasses market and strengthening its presence in virtual and augmented reality. The collaboration, which began in 2021 with the launch of the first generation of Ray-Ban Meta smart glasses, has progressed significantly with the release of a second generation with enhanced capabilities, including the integration of MetaAI, a sophisticated AI assistant.
—Heidi Luo, BTW reporter
What happened
Meta Platforms is in discussions to acquire a 3% to 5% stake in EssilorLuxottica SA, valued at approximately $4.9 billion. By investing in EssilorLuxottica, the manufacturer of Ray-Ban sunglasses, Meta aims to deepen its partnership with the world’s leading eyewear company.
Plus, it would presumably gain more influence over a business that’s key to its virtual and augmented reality efforts and strengthen its position against rivals. Snap has been experimenting with mixed reality glasses for years, while Apple released its Vision Pro headset earlier this year.
Since their initial collaboration on Ray-Ban Meta smart glasses in 2021, the partnership has evolved. According to Boomberg, the relationship has received formal approval from US antitrust authorities, allowing Meta to proceed with its purchase of up to 5% of EssilorLuxottica.
The latest product of this collaboration, unveiled in San Francisco, is the second generation of Ray-Ban Meta smart glasses. These glasses have evolved from their previous capabilities, allowing users to take photos and videos, listen to music and answer calls, and now include MetaAI, an AI assistant based on the Llama artificial intelligence model.
Also read: Meta to integrate AI into Ray-Ban smart glasses
Also read: New Ray-Ban Meta glasses smash sales records, Milleri says
Why it’s important
Meta’s proposed stake in EssilorLuxottica marks another strategic investment in the latest technology, which is similar to its earlier investment in Reliance Industries Ltd‘s Jio Platforms, where it acquired around 10% for $5.7 billion to expand its digital services in India.
Bloomberg Intelligence analysts Mandeep Singh and Nishant Chintala highlighted that Meta’s investment in EssilorLuxottica is likely a strategic reinforcement of its commitment to augmented reality (AR) and smart glasses. Unlike Oculus VR, which Meta owns, the AR segment represents a smaller but fast-growing market opportunity. Smart glasses, equipped with general AI and virtual assistant capabilities, are on their way to becoming essential everyday devices.
This initiative follows Meta’s broader goal of developing the Metaverse, which CEO Mark Zuckerberg sees as the next major computing platform. This virtual environment is expected to change the way people interact, integrate digital experiences into everyday life, and expand the reach and utility of digital technologies.
