Meta is reportedly gearing up to jump into a fresh corner of the wearable market, and this time, it is not just about smart glasses. The company’s working on an AI-powered pendant, something you would actually wear around your neck, and word is they will start testing it in 2027. It’s the latest sign that Meta is not letting those huge hardware losses slow them down. They are doubling down, betting that wearables mixed with smarter AI are where tech is headed.
Reality Labs continues to burn cash
Reality Labs is Meta’s hardware arm which keeps losing money. We are talking over USD 4 billion in losses last quarter, while the division only brought in USD 402 million in revenue. Even so, Meta is not backing off.
They have no intention of shrinking their hardware dreams. If anything, they are going bigger, pumping more cash into developing future AI gadgets. They are convinced that wearables are the next big step for how people interact with AI day-to-day.
What is Meta's AI Pendant?
Imagine a tiny device hanging from your neck, acting as your personal assistant. This idea builds on Meta’s purchase of Limitless, a startup that made a necklace-style gadget for recording, transcribing, and sorting out real-life conversations, all powered by AI. With Meta’s resources, the new pendant will not just record; rather, it will learn, organise and remind you about everything from meetings to random thoughts, serving up summaries and to-dos automatically.
Meta is expanding beyond smart glasses
Meta is not new to wearables, though. Their smart glasses, built with EssilorLuxottica of Ray-Ban and Oakley fame, are already a hit in some circles. But Meta wants more, and as per internal documents, it has been shown in plans for a whole range of new AI-powered glasses, including versions aimed specifically at professionals who need hands-free help in meetings, on the go, or for everyday work.
Ambitious sales targets for wearables
The goals are ambitious, to say the least. Meta wants to sell 10 million wearable devices in just the second half of 2026. To pull that off, they will have to roll out more products and hit more countries, aiming to get a real foothold in the hardware world and lean less on ad dollars for revenue.
Meta's massive AI investment continues
This broad push into wearables is backed by a tidal wave of spending on AI. Meta now expects to shell out between USD 125 and USD 145 billion on capital expenses by 2026 – most of that fuelling new data centres, stronger computing muscle, and cutting-edge AI services.
Mark Zuckerberg even floated the idea that, if they build up enough computing power, Meta could branch out into cloud computing. Imagine Meta renting out AI muscle, almost like a Google or Amazon web service.
Paid AI services could become a major revenue source
There’s also a bigger play around paid AI services. Meta has started testing premium subscription options for Meta AI, with prices running from USD 7.99 up to USD 19.99 a month in some places. These advanced tiers open the door to smarter assistants, souped-up productivity tools, and personalised AI services: all fresh streams of money.
The bigger picture
Between smart glasses, workplace wearables, the upcoming AI pendant, and new subscription services, Meta’s clearly planting its flag in a future driven by artificial intelligence. Even as Reality Labs keeps racking up losses, the company’s whole strategy is about building an ecosystem where AI is not stuck behind screens which is woven into everything you wear, everywhere you go.
