Meta Connect 2025: AI-powered smart glasses take center stage

Meta is pivoting from its costly virtual reality ventures to focus on smart glasses, a move that is drawing the attention of investors eager to see how the market responds. At its upcoming Connect event, the tech giant plans to unveil its most advanced smart glasses, codenamed Hypernova. This innovative device features a small display controllable through hand gestures via a wristband utilizing neural technology, according to recent reports. A promotional video for the Hypernova was briefly available on Meta's YouTube channel before being taken down. Priced at approximately $800, these glasses are the latest development in Meta's collaboration with EssilorLuxottica, which previously produced AI-enhanced Ray-Ban Meta smart glasses in 2023, as well as the Oakley Meta HSTN smart glasses introduced in June. Equipped with cameras, speakers, and microphones, the new glasses will allow users to interact with the Meta AI voice assistant, enabling them to capture images, record videos, and stream music. The financial community has expressed concerns regarding the substantial investments made by Meta's Reality Labs, the division responsible for consumer hardware products like the Ray-Ban glasses and Quest VR headsets. Recently, Meta disclosed an operating loss of $4.53 billion for Reality Labs in the second quarter, bringing the total losses to nearly $70 billion since late 2020. Analysts, such as Justin Post from Bank of America Securities, recognize that while returns on these investments may not materialize for years, there is a growing desire for evidence of progress and potential profitability. According to Post, smart glasses appear to be a more viable investment compared to VR headsets, which remain a niche market. He noted that the company's focus seems to be shifting towards glasses, which could attract a broader audience. The Hypernova marks the first instance of Meta offering smart glasses with a display to consumers, representing a significant step forward from its previous products. While the display on the Hypernova is expected to be small and limited, it serves as a bridge between the existing Ray-Ban Meta glasses and the more experimental Orion augmented reality glasses, which were showcased at last year's Connect event. Although Orion offers impressive visual capabilities, it is still in the prototype phase and comes with high production costs. Analysts believe that the Connect event could provide a platform for Meta to capitalize on the success of the Ray-Ban Meta glasses, which saw sales triple in the past year. The potential for this new product category is significant, as emphasized by CCS Insight's Leo Gebbie. Moreover, there is keen interest in how Meta's recent investments in artificial intelligence, including a substantial $14.3 billion funding into Scale AI, may enhance its hardware initiatives. Post suggests that if Meta can successfully integrate AI features with its devices, smart glasses could potentially become a more effective interface for AI than smartphones. However, the success of the Hypernova hinges not only on the technology itself but also on the development of a rich ecosystem of applications that appeal to consumers. Analysts warn that if the Hypernova fails to resonate with the public, it could dampen the broader market for smart glasses with displays. At $800, the Hypernova is set to be more than twice the price of the Ray-Ban Meta glasses, which start at $299. Reports indicate that Meta has tempered internal sales expectations for the Hypernova, but the company is eager for the launch to generate excitement. Meta aspires for its smart glasses to represent the next evolution in personal computing, challenging the current dominance of Apple and Google's mobile operating systems. Both companies are reportedly developing their own smart glasses, with Apple rumored to be working on a similar project and Google recently announcing a collaboration with Warby Parker. As the competition heats up in the smart glasses market, it's clear that Meta's early efforts could set the stage for future developments in wearable technology.