Meta is developing an AI pendant

According to a report, Meta is working on several new AI glasses and an AI pendant, which are intended to help curb the high losses of its future lab Reality Labs. In addition to selling the devices, Meta also wants to monetize them through associated AI services. This is evident from an internal memo, which The Information reports on.

The first new AI glasses, codenamed “Modelo”, are reportedly set to be released as early as June. In the fall, the “Luna” and “RBM2 Refresh” models are to follow, before a fourth AI glasses, codenamed “Mojito VIP”, is launched in December. Furthermore, Meta is testing internal prototypes designated “Artemis” and “SSG” (“Supersensing Glasses”), which could be released at a later date.

“Artemis” is likely to be Meta's first commercial AR glasses. “SSG”, on the other hand, could be an AI glasses whose cameras and AI systems continuously capture and analyze the environment and which could support a limited form of facial recognition. This is suggested by an earlier report from The Information.

According to the new report, Meta is also planning internal tests of an AI pendant in the coming spring. According to the memo, the device could have a camera, but the document does not contain any further details on its equipment, functions, or design. Last year, Meta acquired the start-up Limitless, which developed an AI pendant.

Meta focuses on a broad portfolio and AI subscriptions

According to the internal memo, Meta has ambitious goals for its wearables business. In the second half of the year, the company aims to sell ten million wearables. For comparison: In the entire past year, Meta sold seven million AI glasses. The new target is to be achieved through new products and an expansion of sales to other countries.

Further revenue is to be generated through AI services connected to the wearables. “To build a sustainable business that doesn't rely solely on hardware margins, we need to monetize the software services that differentiate our devices from the competition,” writes Alex Himel, Meta's Vice President of Wearables, in the memo.

The strategy aims, among other things, to increase the use of Meta's AI models and to generate recurring revenue through paid Meta AI subscriptions. The wearables are to be based on Meta's current AI model Muse Spark and other planned models. These are to be supplemented by a yet-to-be-released AI agent called Hatch, which is aimed at end customers. By the end of the year, Meta aims to have 6.8 million monthly active users of its wearables.

The next big bet: AI wearables

The pressure to act is high, as Meta is losing tens of billions of dollars every year with Reality Labs, the division for VR headsets, smart glasses, and related software. Despite immense investments, the hardware division has so far generated only comparatively low revenues.

After the major breakthrough for VR glasses has so far failed to materialize and corresponding investments have recently been scaled back, Meta is now hoping that smart glasses will become the preferred end device for AI assistants.

However, the competition is already waiting in this area: Google plans to launch its first AI glasses on the market together with several partners in the fall, while Apple is said to be preparing corresponding products for the coming year. OpenAI is also working on AI gadgets, possibly including smart glasses.

(nie)