Meta plans AI pendant and ‘Wearables for Work’ to cut hardware losses

Meta Plans AI Pendant and ‘Wearables for Work’ in Bid to Stem Hardware Losses

Meta Platforms is preparing to test an AI-powered pendant within the next year and launch a business-focused service called “Wearables for Work” as part of a sweeping wearables strategy outlined in an internal memo, The Information reported on Friday. The company also plans to expand its lineup of AI glasses as it seeks to reverse years of mounting losses in its hardware division.channelnewsasia

An Ambitious Roadmap

The memo, first reported by The Information, describes an aggressive push into wearable devices that goes beyond Meta’s existing Ray-Ban smart glasses. According to a post on X citing the report, the internal document sets a target of 10 million wearable device sales in the second half of 2026 and 6.8 million monthly active wearable users by year’s end. Reuters confirmed The Information’s reporting but said it could not independently verify the memo.wkzo

The pendant initiative draws on capabilities Meta gained through its December 2025 acquisition of Limitless, the startup formerly known as Rewind, whose $99 AI pendant could record conversations and generate searchable summaries. Meta said at the time that Limitless would “help accelerate our work to build AI-enabled wearables”. Limitless ceased hardware sales after the deal and began winding down its standalone products.techcrunch

Losses and the Case for Wearables

The wearables push comes as Meta’s Reality Labs division continues to hemorrhage money. The unit posted a $4.03 billion operating loss in the first quarter of 2026 on just $402 million in revenue, bringing cumulative losses since late 2020 past $80 billion. For all of 2025, Reality Labs lost $19.1 billion.datafloq

Yet there are signs that wearables, rather than virtual reality headsets, represent the clearest path to viability. Meta has sold more than seven million pairs of Ray-Ban smart glasses, commanding roughly 82% of the smart glasses market. The company has expanded its glasses lineup this year with prescription-friendly models and is developing next-generation AR glasses, codenamed Phoenix, now expected in 2027.theverge

A Crowded Field

Meta is not alone in pursuing AI wearables. Apple Inc. is reportedly developing its own AI pendant, smart glasses, and camera-equipped AirPods, with the pendant potentially launching as early as 2027. Google announced AI-powered glasses at I/O 2026, with audio-first models arriving this fall. The industry analyst firm Omdia projects the AI glasses market will exceed 10 million units globally in 2026.blog

Whether a pendant form factor can succeed where others have failed remains an open question. The collapse of Humane’s AI Pin and the absorption of Limitless into Meta suggest the standalone pendant category faces steep headwinds. Meta appears to be betting that integrating pendant-like capabilities into a broader ecosystem of glasses, watches, and enterprise services offers a more durable path forward.sacra