Meta acquires "AI pendant" startup Limitless to expand its AI hardware business.

Meta has acquired the AI wearable device startup Limitless, marking CEO Mark Zuckerberg’s bet in AI hardware expanding from smart glasses to a broader range of device types. According to the Financial Times on December 5, the deal is Meta’s latest move to accelerate its vision of building “personal superintelligence”; the company announced this week that part of its metaverse resources will be shifted towards the development of AI wearable devices. Limitless, backed by venture firm Andreessen Horowitz and OpenAI CEO Sam Altman, produces an AI device that can be worn as a necklace or clipped to clothing. Previously known as Rewind, the company has raised over $33 million from investors, and its latest publicly disclosed valuation in 2023 was $367 million according to PitchBook data. This week, Zuckerberg emphasized the importance of wearable devices for Meta’s development of “personal superintelligence.” On Wednesday, he announced the establishment of a new design studio within the Reality Labs division for virtual and augmented reality, and brought in senior design executive Alan Dye from Apple to lead the team. On Thursday, Meta said it would shift some metaverse team resources toward AI wearable devices such as smart glasses—a move that pushed the company’s stock price up nearly 3.5%. This acquisition brings Meta into a new but increasingly crowded market, one that has sparked controversy over privacy issues. These always-on listening devices face regulatory and consumer scrutiny; several previous products in this category have suffered setbacks due to technical failures or privacy concerns. From Smart Glasses to Pendant Devices The report noted that Meta’s previous efforts in AI wearables mainly focused on smart glasses. Zuckerberg has said that smart glasses could replace smartphones as the main device people use for translation, chatbots, and other AI tools. The acquisition shows he is now exploring other types of device form factors. Speaking about the new design studio, Zuckerberg said: “We’re entering a new era where AI glasses and other devices will change how we connect with technology and with each other.” On Friday, Limitless stated: “Meta recently announced a new vision to bring personal superintelligence to everyone, and a key part of that vision is creating amazing AI wearable devices. We share this vision and will join Meta to help achieve our common goal.” Meta did not disclose the financial terms of the deal. In its statement, Meta said: “We’re excited to have Limitless join Meta to help accelerate our work building AI wearables.” Entering a Fiercely Competitive, Yet Controversial AI Device Market According to reports, Meta is entering an emerging but increasingly competitive AI device market. Besides smart glasses, multiple tech companies and startups are experimenting with different forms of AI hardware. OpenAI has partnered with former Apple design star Jony Ive, and their secretive team is developing a palm-sized screenless device that responds to users’ audio and visual signals. This summer, Amazon acquired the AI bracelet startup Bee. Limitless’s pendant can record and transcribe conversations in real time, allowing users to search this information through its app. The startup positions its product as using AI to "overcome the limitations of the human brain in areas like focus and memory.” The company stated it would continue supporting existing customers of its Pendant product for at least a year, but would no longer sell to new customers. Notably, these always-on listening devices have caused controversy over privacy concerns. Silicon Valley startup Friend produced a pendant device that lets users chat with an AI robot, but it was criticized for being “creepy” and having a “prickly” personality. Humane, supported by OpenAI CEO Altman, recently abandoned its AI pin due to widespread technical failures. These setbacks highlight the technical and market acceptance challenges facing the industry. Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute individual investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of any particular user. Users should consider whether any views, opinions, or conclusions in this article are appropriate for their individual circumstances. Any investments made based on this article are at the user’s own risk.