Acquiring the AI pendant startup Limitless, Meta aims to expand its AI hardware business

Meta has acquired the artificial intelligence wearable device startup Limitless, marking CEO Mark Zuckerberg's expansion of his bets in the AI hardware field from smart glasses to more types of devices.

On December 5th, according to the Financial Times, this deal is the latest move by Meta to accelerate the construction of its "personal superintelligence" vision, as the company announced this week that it would shift some of its metaverse resources towards the development of AI wearable devices.

Limitless has received support from venture capital firms Andreessen Horowitz and OpenAI CEO Sam Altman, producing an AI device that can be worn as a necklace or pinned to clothing. The company, previously known as Rewind, has raised over $33 million from investors, with its latest public valuation in 2023 at $367 million according to PitchBook data.

Zuckerberg emphasized the importance of wearable devices for Meta's development of "personal superintelligence" this week. He announced on Wednesday the establishment of a new design studio within the virtual and augmented reality division Reality Labs, bringing in former Apple senior design director Alan Dye to lead the team. On Thursday, Meta stated it would redirect some resources from its metaverse teams towards AI wearable devices like smart glasses, a move that drove the company's stock price up nearly 3.5%.

This acquisition places Meta in an emerging but increasingly crowded market that has sparked controversy over privacy issues. Such always-on listening devices face scrutiny from regulators and consumers, as several similar products have encountered setbacks due to technical failures or privacy concerns.

From Smart Glasses to Pendant Devices

Reports indicate that Meta's efforts in the AI wearable device space have previously focused primarily on smart glasses.

Zuckerberg has stated that smart glasses could replace smartphones as the primary device for using AI tools like translation or chatbots. This acquisition suggests he is exploring other types of device forms.

Speaking about the new design studio, Zuckerberg said, "We are entering a new era where AI glasses and other devices will change the way we connect with technology and each other."

Limitless stated on Friday:

"Meta recently announced a new vision to bring personal superintelligence to everyone, a key part of which is to create stunning AI wearable devices. We share this vision and will join Meta to help realize our common vision."

Meta did not disclose the financial terms of the transaction. In a statement, Meta said: "We are excited to have Limitless join Meta to help accelerate our work in building AI wearable devices."

Entering a Competitive but Controversial AI Device Market

According to reports, Meta is entering an emerging but increasingly competitive AI device market. In addition to smart glasses, several tech companies and startups are experimenting with different forms of AI hardware.

OpenAI has collaborated with former Apple star designer Jony Ive, and their mysterious team is developing a palm-sized, screenless device that responds to audio and visual signals from users and their environment. This summer, Amazon acquired the AI bracelet startup Bee.

The Limitless pendant can record and transcribe conversations in real-time, allowing users to search for this information through the company's app. The startup positions its product as using AI to "overcome the limitations of the brain in areas such as focus and memory."

The company stated that it will continue to support existing customers of the Pendant product for at least a year but will no longer sell to new customers.

It is worth noting that such always-on listening devices have sparked controversy due to privacy concerns. The pendant device produced by Silicon Valley startup Friend allows users to chat with an AI robot but has been criticized for being "creepy" and having a "sharp" personality.

The AI brooch made by Humane, supported by OpenAI CEO Altman, was recently abandoned due to widespread malfunction issues. These setbacks highlight the technical and market acceptance challenges facing the industry