Meta's $50 Billion Bet on AI: Stake in Ray-Ban's Parent Signals Big Plans

Meta Platforms has acquired a 3% stake in EssilorLuxottica, the parent company of Ray-Ban and Oakley, in a move analysts see as a deepening partnership to develop smart glasses. The investment reflects a focus on smart glasses in Meta's hardware and AI wearable strategy. BofA Securities analyst Justin Post raised the price target on Meta to $765, citing potential AI opportunities.

Meta Platforms (META) has acquired a nearly 3% stake in EssilorLuxottica, the parent company of Ray-Ban and Oakley, in a strategic move aimed at deepening their partnership in the development of smart glasses. The investment, valued at approximately $3.5 billion [1], reflects Meta's growing focus on AI and wearable technology.

The acquisition comes as Meta continues to expand its smart glasses partnership with EssilorLuxottica, which began in 2019. The collaboration has led to the release of several smart glasses models, including the Oakley Meta HSTN, set to be released on July 11th. The Oakley Meta HSTN features enhanced battery life, higher resolution video capture, and other advanced functionalities [2].

Analysts, such as Justin Post from BofA Securities, have raised the price target on Meta to $765, citing the potential for AI opportunities and the company's focus on hardware and AI wearables [1]. This investment in EssilorLuxottica aligns with Meta's broader strategy to reduce dependence on smartphone manufacturers and distribute its offerings through its own hardware.

Meta's shift towards AI and smart glasses is part of a larger trend within the tech industry. Competitors such as Google and Apple are also investing heavily in AI eyewear, with Google partnering with Warby Parker and Gentle Monster to develop Android XR smart glasses and Apple planning to launch its own smart glasses by 2026 [3]. Meanwhile, Chinese tech giant Xiaomi has already released its Xiaomi AI Glasses, which offer features like continuous recording and electrochromic lenses [2].

The acquisition underscores Meta's commitment to the smart-glasses category and its long-term vision for turning glasses into a major technology platform. As the market for AI-powered eyewear continues to grow, Meta's partnership with EssilorLuxottica positions the company to capitalize on this emerging technology.

References:
[1] https://www.roadtovr.com/meta-essilorluxottica-investment-3-5-billion-smart-glasses/
[2] https://www.investopedia.com/meta-buys-stake-in-the-parent-company-of-ray-ban-and-oakley-report-says-11768572
[3] https://www.eweek.com/news/meta-invests-essilorluxottica-ai-smart-glasses/