Shares of EssilorLuxottica, the Ray-Ban maker tied to Meta through its smart-glasses partnership, crashed by 4.8% on Monday after Google announced it will roll out its first AI-powered glasses in 2026.
Meta’s stock also slipped by 1% in premarket trading as of press time. Google stated it plans to release two types of glasses. One set will be audio-only, enabling users to speak directly to the Gemini AI assistant.
The other set will feature an in-lens display that presents simple visual information, such as navigation directions and live language translation. Google indicated that the initial display models will be available next year, though specific styles were not detailed. The company confirmed that the complete lineup of AI-powered glasses is scheduled for release in 2026.
Google's Hardware Partnerships for AI Glasses
Google is collaborating with major hardware partners for its AI glasses development. The company is working with Samsung, Gentle Monster, and Warby Parker, following a $150 million deal with Warby Parker secured in May. These glasses will operate on Android XR, Google’s operating system designed for headsets and mixed-reality devices. In a filing on Monday, Warby Parker announced that its first glasses developed in conjunction with Google are expected to reach the market in 2026, aligning with Google's own projected timeline.
Google co-founder Sergey Brin reflected on the company's prior attempt at smart glasses, noting that it failed due to the limitations of early AI systems and supply chain constraints. Brin stated, "Now, in the AI world, the things these glasses can do to help you out without constantly distracting you — that capability is much higher."
Google's re-entry into the smart glasses market positions another major tech company in the same competitive space. This development occurs at a time when investors are already cautious about how shifts in AI hardware could potentially impact markets sensitive to risk sentiment.
Meta's AI Advancements and Investor Scrutiny
Meta's AI strategy is increasingly focused on internal development and hiring rather than public branding. Chief executive Mark Zuckerberg previously expressed that the Llama AI models would be "the most advanced in the industry" and aimed to "bring the benefits of AI to everyone."
During Meta's earnings call in January, Zuckerberg dedicated significant time to discussing Llama, a notable increase from mentioning it only once in the October call.
Sources close to the company indicate that Meta is developing a new frontier model named Avocado, which is considered the next major evolution beyond Llama. Many within Meta had anticipated Avocado's release before the end of 2025, but the revised target is now the first quarter of 2026.
This adjustment is attributed to training tests designed to ensure stable performance upon the model's public launch. A Meta spokesperson commented, "Our model training efforts are going according to plan and have had no meaningful timing changes."
Meta has made substantial investments to maintain its competitive edge. In June, the company acquired Alexandr Wang, the founder of Scale AI, along with key engineers and researchers, in a deal valued at $14.3 billion. Simultaneously, Meta acquired a significant stake in Scale.
Four months later, Meta revised its 2025 capital spending forecast upward to between $70 billion and $72 billion, from a previous range of $66 billion to $72 billion. This increase reflects the company's ongoing pursuit of AI capabilities that can rival or surpass those being introduced by competitors such as Google and OpenAI.