Augmented Reality

Even Realities, a Chinese smart-glasses startup founded by an ex-Apple executive, has achieved unicorn status by securing $150 million in funding, valuing the company at $1 billion. The investment, backed by Tencent and Meituan, will accelerate AI integration, global expansion, and product innovation for its privacy-focused smart glasses. This positions Even Realities to compete in the rapidly growing AI wearable market.

Meta launched new $299 smart glasses, a more affordable option in its wearable push. Developed with EssilorLuxottica, these glasses feature a camera and speakers for AI-powered translation and media capture. While lacking a display, they represent a step towards future advanced eyewear. This move competes with emerging AR devices from Google and Snap, as Meta aims for dominance in the AI-driven hardware market.

Snap CEO Evan Spiegel unveils “Specs,” ambitious $2,195 AR glasses targeting consumers as a new “spatial computing” platform. Shifting from smartphone screens, Specs integrates digital information into the real world, aiming for a future beyond traditional devices. This move positions Snap against competitors like Meta and Google in the nascent AR market. Despite investor caution and a challenging economic climate, Spiegel believes Specs represents the most capable and accessible spatial computer available, with future plans for AI agent integration and child safety features.

Activist investor Irenic Capital Management has urged Snap CEO Evan Spiegel to implement strategic changes to significantly boost the company’s stock. Recommendations include potentially shutting down or divesting the AR glasses unit and reducing the workforce by 1,000 employees, leveraging AI for operational streamlining. Irenic believes these steps could increase Snap’s stock by nearly 600%. Snap stated it welcomes shareholder input and is evaluating actions for long-term value.

Snap Inc. has launched Specs Inc., a new subsidiary focused on its augmented reality (AR) glasses. This move aims to boost operational autonomy and attract partners, facilitating the upcoming release of their next-gen AR glasses. The company is hiring around 100 people for Specs Inc. This strategic expansion happens as competitors like Meta and Alphabet also invest heavily in AR eyewear, though Meta recently underwent significant layoffs in its AR/VR division, indicating a shift towards AI and wearables.

Meta’s Ray-Ban Smart Glasses are experiencing overwhelming demand in the U.S., leading to production delays and a postponed international rollout. The company is prioritizing existing U.S. orders, with waitlists extending into 2026. This high consumer interest in Meta’s AI-powered eyewear, which offers photo/video capture, music, calls, and AI assistant interaction, highlights a growing market for wearable AI devices.

Snap Inc. (SNAP) shares rose 9% after announcing a $400M Perplexity AI collaboration and Q3 results exceeding expectations. The deal integrates Perplexity’s search engine into Snapchat, enhancing information discovery. Snap expects revenue generation from 2026. Q3 revenue reached $1.51B with increased daily active users. However, Snap anticipates lower Q4 DAUs due to age verification implementations and regulatory compliance. Snap is also advancing its hardware ambitions with the projected 2026 launch of its sixth-generation augmented reality glasses, Specs.

Despite substantial losses in its Reality Labs division, Meta continues investing in VR/AR technologies for the metaverse. Q3 saw a $4.4B operating loss on $470M in sales. While VR headsets face headwinds, Meta anticipates growth in AI glasses revenue, driven by strong demand for its $799 Meta Ray-Ban Display glasses. These glasses, integrating AI for real-time translation and hands-free control, boosted EssilorLuxottica sales. A strategic shift towards AI is suggested by Vishal Shah’s appointment, raising questions about balancing metaverse investment with AI’s potential across Meta’s platform and driving Reality Labs profitability.

Meta’s new $799 Ray-Ban Display glasses feature a built-in display and a neural interface wristband for intuitive control. Launching Sept. 30, the glasses offer practical AR functionality like message viewing and live captions, prioritizing utility over immersive entertainment. A small display in the right lens, coupled with hand gestures enabled by the EMG wristband, allows users to control the glasses, activating apps and adjusting volume. While the display clarity has compromise, the wristband and voice command function show potential for expanded AR applications.

At Meta Connect, Mark Zuckerberg introduced the Meta Ray-Ban Display glasses ($799), consumer-ready smart glasses with integrated displays controlled by hand gestures via a neural wristband. This marks Meta’s expansion into augmented reality, bridging the gap between audio-only glasses and experimental AR glasses. Alongside, Meta also unveiled the Oakley Meta Vanguard smart glasses ($499) for athletes, and the Ray-Ban Meta (Gen 2) with improved battery and camera. The event also announced Horizon TV for streaming content on Meta Quest VR headsets.