Meta targets Reality Labs recovery with AI pendant and enterprise wearables push

Meta is reportedly developing an AI-powered pendant, with testing scheduled to begin within the next year, according to a memo viewed by The Information. The device is expected to build upon technology developed by Limitless, an artificial intelligence startup that Meta acquired in late 2025. The acquisition was previously described as a move to accelerate the development of AI-enabled wearables, with Limitless having previously created a pendant designed to record conversations when worn as a necklace or attached to clothing.

The planned hardware initiatives form part of a broader strategy to address significant financial challenges within Meta’s Reality Labs division. The division reported a loss of $4 billion in the first quarter of this year, underscoring the pressure on the company to find viable revenue streams within its hardware portfolio. The memo also indicates that Meta intends to expand its existing lineup of AI glasses and introduce a new business subscription service titled Wearables for Work.

These efforts come as the broader industry grapples with the commercial viability of AI wearables. Previous iterations of such devices have struggled to achieve widespread consumer adoption, with analysts suggesting potential barriers include privacy concerns, marketing missteps, or a lack of perceived utility. Despite these hurdles, competitors such as OpenAI continue to pursue similar hardware initiatives, indicating sustained interest in the sector.

The introduction of the Wearables for Work subscription service suggests a pivot toward enterprise applications, potentially offering a more stable revenue model compared to consumer hardware sales. By targeting business users, Meta may seek to mitigate the risks associated with consumer adoption rates while leveraging its existing infrastructure and AI capabilities.

It remains unclear whether these hardware developments will be sufficient to offset the substantial losses incurred by Reality Labs. TechCrunch has reached out to Meta for comment regarding the details of the memo and the company’s current hardware roadmap. The success of the AI pendant and related products will likely depend on their ability to deliver tangible value while addressing the privacy and utility concerns that have hindered previous attempts in the market.