Meta is reportedly preparing to test an AI-powered pendant as part of its expanding wearable technology strategy, signalling that the company is continuing to invest heavily in artificial intelligence hardware despite mounting losses in its Reality Labs division. The move reflects Meta’s broader effort to establish a stronger presence in the fast-growing AI wearables market and create new revenue streams beyond its core advertising business.
The reported plans come at a time when investors are closely scrutinising Meta’s spending on artificial intelligence and hardware development. Reality Labs, the division responsible for products such as virtual reality headsets and smart glasses, reported losses exceeding $4 billion in the first quarter while generating only $402 million in revenue.
AI pendant testing expected next year
According to reports citing an internal memo, Meta plans to begin testing an AI-powered pendant in the coming year. The device is expected to become part of the company’s growing wearable ecosystem, which already includes AI-enabled smart glasses developed in partnership with EssilorLuxottica under the Ray-Ban and Oakley brands.
The internal memo was reportedly authored by Alex Himel, Meta’s Vice President of Wearables, and outlines an ambitious roadmap aimed at expanding the company’s hardware portfolio. Besides the AI pendant, the company is also planning to significantly broaden its lineup of AI-powered glasses and introduce enterprise-focused wearable products.
Limitless acquisition strengthens wearable strategy
The AI pendant project is believed to build upon Meta’s acquisition of AI wearable startup Limitless. The startup gained attention for developing a pendant-style device capable of recording, transcribing and organising real-world conversations using artificial intelligence.
Industry observers viewed the acquisition as a strategic move to accelerate Meta’s ambitions in next-generation wearable computing. The latest reports suggest the company is now moving towards integrating that technology into its broader AI hardware ecosystem.
The proposed pendant is expected to function as a personal AI assistant capable of helping users manage conversations, reminders and productivity-related tasks through real-world interaction data.
Meta expands into workplace wearables
Another major element of Meta’s wearable roadmap is a new initiative reportedly called “Wearables for Work”. The programme is expected to focus on enterprise customers and workplace productivity solutions.
Reports suggest Meta sees opportunities beyond consumer technology and plans to develop wearable devices tailored for business use cases. The company is reportedly targeting pilot programmes with multiple organisations and aims to expand adoption in professional environments.
The initiative indicates that Meta is seeking to position wearable AI devices as practical tools for productivity, collaboration and workplace efficiency rather than solely consumer-focused gadgets.
Ambitious sales targets despite losses
Meta reportedly aims to sell 10 million wearable devices during the second half of 2026 by launching new products and expanding availability across additional markets. Achieving such a target would represent a significant milestone for the company’s hardware business, which has struggled to justify years of heavy investment.
The company continues to face intense competition from rivals including Google, OpenAI and other technology firms that are investing aggressively in AI-powered hardware and wearable computing.
AI investments continue to rise
The wearable push comes alongside Meta’s broader artificial intelligence spending strategy. The company recently increased its capital expenditure forecast to between $125 billion and $145 billion as it expands computing infrastructure needed to support advanced AI services.
Although Meta’s advertising business remains highly profitable, investors have increasingly questioned whether the company’s massive AI and hardware investments will generate sustainable long-term returns.
During the company’s annual shareholder meeting, CEO Mark Zuckerberg acknowledged that Meta could potentially enter the cloud computing market in the future if it builds more computing capacity than required for its internal AI operations.
He noted that external organisations frequently approach Meta seeking access to AI services and computing resources, although the company currently expects to utilise most of its infrastructure internally.
New monetisation plans emerge
At the same time, Meta is exploring ways to monetise its growing AI ecosystem. The company recently announced plans to test subscription tiers for its AI services, with premium offerings expected to provide advanced capabilities and enhanced AI experiences.
Industry analysts believe Meta’s future growth strategy may increasingly depend on AI subscriptions, enterprise services and wearable devices working together as an integrated ecosystem.
As competition in AI hardware intensifies, Meta’s planned AI pendant could become one of the company’s most closely watched products, potentially shaping the next phase of consumer and workplace AI adoption.