Meta is taking a minority ownership share of the world’s largest eyewear manufacturing company as it continues its investment in AI-powered smart glasses.
Bloomberg reported on Tuesday that Meta is acquiring a little under 3% of EssilorLuxottica, a minority stake worth around $3.5 billion.
EssilorLuxottica had a market cap of over $137 billion at the time of writing and is the “global industry leader” in contact lenses and eyewear, with approximately 20% market share, according to S&P Global Ratings. The company boasts a substantial portfolio of brands, including Oakley, Ray-Ban, and Persol, as well as numerous licensing agreements with luxury eyewear brands such as Burberry, Chanel, and Ralph Lauren.
Meta and EssilorLuxottica released a waterproof, sport-focused pair of Oakley Meta glasses in June that feature a built-in camera and open-ear speakers. The glasses also integrate Meta AI features, so users can ask the glasses questions and use voice commands to take videos and pictures.
The two companies have worked together since 2019 and have developed two generations of Ray-Ban Meta smart glasses. The second generation has sold over two million pairs since its launch in late 2023.
At $399, the Oakley Meta glasses are priced higher than the $299 Ray-Ban Meta glasses, but have several features to justify the price tag, including a better battery life, weather-resistance, and a higher resolution camera.
Meta is also reportedly working with EssilorLuxottica on AI smart glasses featuring the Prada brand, per a report last month from CNBC. Meta has yet to announce the Prada collaboration or reveal when the Prada Meta glasses will hit the market.
Related: Google Is Making AI ‘Intelligent Eyewear’ With Warby Parker After Eyeing Meta’s Ray-Ban Success
Meta’s goal is to ultimately bring to market a pair of smart glasses that overlay the physical world with holograms, or 3D digital avatars of real people.
At the Meta Connect annual event in September, Meta CEO Mark Zuckerberg revealed Orion, the company’s first fully functioning prototype of holographic glasses, calling it “the most advanced pair ever made.” Zuckerberg did not announce when Orion will hit the market, stating that developers are working on fine-tuning the glasses.
Mark Zuckerberg wears the Orion holographic glasses at Meta Connect in September. Photographer: David Paul Morris/Bloomberg via Getty Images
Bloomberg also reported that Meta is considering investing further in EssilorLuxottica to eventually increase its stake to around 5%.
Meanwhile, other tech companies are eyeing the smart glasses space following Meta’s success with the Ray-Ban. Google announced in May that it is committing $150 million to develop AI glasses in partnership with Warby Parker, with plans to launch the first pair of glasses after 2025. In a live demonstration, the glasses could translate from one language to another in real-time and answer questions about objects in the physical world.
Apple is also reportedly working on its first pair of smart glasses to be released by the end of 2026, and has conducted focus groups to figure out what employees liked about smart glasses from rivals like Meta.
Researchers predict that the smart glasses market will grow considerably in several years. GrandView Research estimates that the smart glasses market will expand from $1.93 billion in 2024 to $8.26 billion in 2030.
Meta is taking a minority ownership share of the world’s largest eyewear manufacturing company as it continues its investment in AI-powered smart glasses.
Bloomberg reported on Tuesday that Meta is acquiring a little under 3% of EssilorLuxottica, a minority stake worth around $3.5 billion.
EssilorLuxottica had a market cap of over $137 billion at the time of writing and is the “global industry leader” in contact lenses and eyewear, with approximately 20% market share, according to S&P Global Ratings. The company boasts a substantial portfolio of brands, including Oakley, Ray-Ban, and Persol, as well as numerous licensing agreements with luxury eyewear brands such as Burberry, Chanel, and Ralph Lauren.
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