Meta reportedly in talks to license Magic Leap's augmented reality technology

Meta reportedly in talks to license Magic Leap’s augmented reality technology

Meta, formerly known as Facebook, is reportedly in talks with Magic Leap to secure a multi-year intellectual property (IP) licensing and manufacturing agreement. The potential partnership aims to help Meta maintain an edge over new entrants like Apple in the increasingly crowded augmented reality (AR) market. While details of the negotiations remain limited, sources suggest that the collaboration is not expected to result in a jointly developed headset. Instead, Magic Leap could provide Meta with access to its optical technology, while also assisting with the manufacturing of Meta’s VR devices.

According to the Financial Times, the partnership could enable Meta to produce more of its VR headsets domestically, aligning with the current trend of US companies seeking to reduce their dependence on China. This move could alleviate some of the manufacturing pressure on Meta and support the company’s efforts to scale its VR operations. However, Meta has yet to respond to requests for comments from Engadget regarding the reported collaboration, and Magic Leap confirmed that partnerships are a growing opportunity for the company.

The timing of the report is significant for a couple of reasons. Meta is facing investor pressure to demonstrate tangible results from its substantial investments in CEO Mark Zuckerberg’s vision of the future of computing. While the company does not anticipate profitability from its metaverse projects for several more years, it is currently spending approximately $10 billion annually on its Reality Labs division. In parallel, Apple is widely anticipated to enter the AR headset market in the near future, potentially unveiling its offering at the upcoming WWDC developer conference.

As Meta seeks to solidify its position in the AR space, a partnership with Magic Leap could provide access to valuable optical technology and manufacturing capabilities. By leveraging these resources, Meta may bolster its competitiveness and mitigate the impact of new players like Apple. The outcome of the ongoing negotiations and potential collaboration between Meta and Magic Leap could shape the future landscape of the AR industry.

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