The news: Meta purchased a $3.51 billion stake in eyewear maker EssilorLuxottica, signaling its long-term commitment to AI-powered smart glasses. It now holds about a 3% share but is considering a larger investment that would increase its share to 5%, per Bloomberg.

EssilorLuxottica’s stock rose about 6% Wednesday after the announcement.

Zooming out: Meta and EssilorLuxottica have been partners since 2019, resulting in two generations of Ray-Ban Meta Smart Glasses and the upcoming Oakley Meta HSTN glasses. This minority stake marks Meta’s rising interest in AI-powered wearables and could support a broader product roadmap.

It’s expected to launch a next generation of Ray-Ban glasses next year with AI-enabled facial recognition, expanding the glasses’ use cases while testing the limits of user privacy.

Why it matters: An expansion of Meta’s AI smart glasses offerings could open new applications and marketing channels.

• Meta AI’s voice assistant could power voice-activated B2B sales or retail tools, while its AR capabilities could open the door to immersive sales demos and brand experiences.
• Facial recognition could increase the volume and detail of user data available to Meta and brands and fuel deeper analytics and personalization.

Competition in the field: OpenAI—currently battling with Meta for AI talent—is a soon-to-be contender in the AI device space. The company is developing a dedicated AI product with former Apple device chief Jony Ive, though it may not take the form of smart glasses.

• This week, OpenAI CEO Sam Altman told Bloomberg that he doesn’t like smart glasses.
• The company may instead pursue a pin or pendant device, leaving Apple and Google as Meta’s potential Big Tech rivals in the smart glasses space.

Our take: Meta and EssilorLuxottica’s deeper partnership proves the Ray-Ban smart glasses aren’t a one-off product but the foundation of a fuller product ecosystem that could include collaborations with more eyewear makers. The tech’s discreet design, paired with fashion-forward luxury brands and stronger AI abilities, could drive mainstream consumer adoption.

Marketers should view smart glasses as more than a casual consumer device. Start developing internal tools such as training and simulation applications and user-facing offerings like personalized experiences and voice-activated product walkthroughs.