Meta to Test AI Pendant and Expand Wearable Device Lineup

Meta Platforms is developing an AI-powered pendant and a specialized enterprise service called Wearables for Work as part of a strategic effort to mitigate substantial financial losses within its hardware division. According to an internal memo reported by The Information on May 30, 2026, the company intends to begin testing the AI pendant in 2027 as it expands its roadmap for wearable devices.

The hardware push comes as Meta’s Reality Labs division continues to report significant operational deficits. In the first quarter of 2026, Reality Labs recorded a loss of $4.03 billion against revenue of $402 million. The pivot toward AI-integrated wearables is designed to diversify the division’s product offerings and establish a more sustainable revenue stream beyond virtual reality headsets.

The strategy was outlined in a memo from Alex Himel, Meta’s vice president of wearables. Himel’s plan involves a significant expansion of the company’s AI glasses portfolio and the introduction of the Wearables for Work initiative, which aims to bring AI-enabled hardware into professional environments to increase adoption and utility.

Meta has set an aggressive sales target to sell 10 million wearable devices in the second half of 2026. To achieve this volume, the company plans to launch new products and expand the availability of its current wearable lineup into additional international markets.

Strategic Hardware Expansion

A central component of Meta’s wearable strategy is the development of the AI pendant. To accelerate the creation of this device, Meta acquired the AI-wearables startup Limitless in 2025. Limitless specializes in pendant-style hardware capable of recording and transcribing real-world conversations, a core functionality that Meta intends to integrate into its next-generation AI wearables.

Beyond the pendant, Meta is doubling down on its partnership with EssilorLuxottica. This collaboration allows Meta to integrate its AI technology into established eyewear brands, including Ray-Ban and Oakley, blending consumer fashion with AI-powered smart glasses.

The expansion into the enterprise sector via Wearables for Work suggests a shift toward B2B revenue. By tailoring hardware for professional use, Meta aims to move beyond the consumer novelty phase of AI wearables and embed its technology into daily workplace workflows.

Financial Context and Market Positioning

The financial pressure on Reality Labs is evident in the wide gap between its quarterly spending and its earnings. The $4.03 billion loss in the first quarter of 2026 underscores the high cost of developing the metaverse and wearable ecosystem, where research and development expenses far outweigh current commercial returns.

By targeting 10 million units by the end of 2026, Meta is attempting to reach a critical mass of users that could justify the continued investment in Reality Labs. The company is betting that AI-driven wearables, which are generally less intrusive than full VR headsets, will find broader market acceptance.

The move into AI pendants and professional wearables positions Meta to compete more directly with other AI-first hardware attempts that prioritize ambient computing—where the AI assists the user in the background without requiring a screen.

Meta declined to provide a comment to Reuters regarding the internal memo and the reported hardware roadmap.

The company’s current trajectory indicates a broader shift in its hardware philosophy: moving from immersive virtual environments toward augmented, AI-enhanced physical reality. The integration of transcription and real-time AI assistance, as seen in the Limitless acquisition, suggests that Meta views the capture and processing of real-world audio and visual data as the primary value proposition for its future wearables.