Meta Invests $3.5 Billion in EssilorLuxottica, World's Largest Eyewear Maker, to Boost AI Glasses Push

Meta Platforms Inc. has invested $3.5 billion in EssilorLuxottica, the world's largest eyewear maker, in a deal that increases its financial commitment to the smart glasses industry. The investment is part of Meta's push into AI-powered glasses, which it currently sells under the Ray-Ban and Oakley brands. EssilorLuxottica is the maker of Ray-Ban sunglasses and has a global distribution network that could help Meta turn its smart glasses into mass-market products.

Meta Platforms Inc. (NASDAQ: META) has made a significant move in the wearable technology space by investing approximately $3.5 billion in EssilorLuxottica SA (OTC: ESLOY), the world's largest eyewear maker. This deal, which involves a minority stake acquisition, aligns with Meta's strategic ambition to expand beyond traditional platforms and innovate in hardware, particularly AI-powered eyewear [1].

The investment, valued at around €3 billion ($3.5 billion) at the current market price, marks an important step for Meta in its quest to deliver AI capabilities through tangible consumer products. The acquisition comes at a time when Meta is increasingly focusing on AI as a core growth pillar, as evident in its recent partnerships and product launches [2].

The deal deepens the relationship between Meta and EssilorLuxottica, which have already collaborated on the development of AI-powered smart glasses. Meta currently markets Ray-Ban smart glasses, featuring embedded cameras and AI assistants, and recently introduced a new line of Oakley-branded products enhanced with similar technology [3].

EssilorLuxottica CEO Francesco Milleri had previously indicated that Meta was interested in taking a stake in the company, and this investment cements that interest. The transaction underscores growing confidence in the mainstream adoption potential of smart eyewear [1].

Meta's investment in EssilorLuxottica provides a strategic advantage by leveraging the latter's global distribution network, which could be crucial in turning Meta's smart glasses into mass-market products. Meanwhile, EssilorLuxottica benefits from a deeper presence in the tech world, which could be beneficial if Meta's futuristic bets on AI-powered wearables pay off [2].

While Meta's shares rose slightly following the announcement, the overall impact on the stock market remains to be seen. The deal is part of a broader trend in the tech industry, where companies are increasingly investing in wearable technology and AI capabilities [4].

References:
[1] https://finance.yahoo.com/news/meta-invests-3-5-billion-194124193.html
[2] https://us.fashionnetwork.com/news/Meta-invests-3-5-billion-in-world-s-largest-eye-wear-maker-in-ai-glasses-push,1747494.html
[3] https://www.benzinga.com/markets/tech/25/07/46311405/mark-zuckerberg-led-meta-acquires-nearly-3-of-ray-ban-oakley-parent-essilorluxottica-in-3-5-billion-deal-report
[4] https://www.businessoffashion.com/news/technology/meta-invests-35-billion-in-worlds-largest-eye-wear-maker-in-ai-glasses-push/