Meta is betting big on AI-powered wearables to turn around its struggling hardware business. The company plans to test an AI pendant device within the next year and launch a business-focused service called “Wearables for Work,” according to The Information, which cited an internal memo from Alex Himel, Meta’s vice president of wearables.
The ambitious roadmap comes as Meta’s Reality Labs division continues to bleed money. The hardware unit posted a staggering $4.03 billion loss in the first quarter alone, despite generating just $402 million in revenue. This push into AI wearables represents a critical pivot for the company as it searches for new revenue streams beyond its core social media platforms.
Meta’s strategy involves a significant expansion of its AI glasses lineup and aggressive international expansion. The company has set an ambitious target of selling 10 million wearable devices in the second half of 2026. To reach this goal, Meta plans to launch new products while expanding sales to additional countries beyond its current markets.
The company already has established partnerships with eyewear giants EssilorLuxottica, working with Ray-Ban and Oakley brands to create AI-powered smart glasses. These devices represent Meta’s first major success in the wearables space, offering users voice commands and smart features integrated into familiar eyewear designs.
The AI pendant represents a new direction for Meta’s hardware ambitions. Last year, the company acquired AI-wearables startup Limitless, which makes a pendant-style device that records and transcribes real-world conversations. This acquisition signals Meta’s intention to move beyond traditional form factors like glasses and headsets into more discreet, always-on AI companions.
The workplace-focused “Wearables for Work” service could tap into the growing enterprise market for AI tools. As companies increasingly adopt AI assistants and productivity tools, wearable devices that can seamlessly integrate with work environments could find significant demand. This business focus also provides Meta with a potentially more predictable revenue stream compared to consumer products.
Meta’s hardware struggles highlight the challenges tech giants face when expanding beyond their core competencies. Despite massive investments in virtual reality through its Quest headsets and ambitious metaverse vision, the Reality Labs division has consistently failed to generate meaningful profits. The shift toward AI wearables represents a more pragmatic approach, building on current AI trends rather than betting on future virtual worlds.
The success of this wearables strategy will be crucial for Meta’s long-term diversification efforts. With regulatory pressure mounting on its social media businesses and competition intensifying in digital advertising, hardware revenue could provide important balance to the company’s business model. However, Meta faces stiff competition from Apple, Google, and other tech companies also pursuing AI wearables.
