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A licensing agreement between Meta and Magic Leap is going to be finalized

Magic Leap

AR holds great potential. Despite this fact, we have not seen anything profitable for companies like Apple, Meta, and others. As per some recent reports, Meta is investing $13 billion annually in Reality labs. Still, it is not able to come up with something lucrative for the company. Besides this, the company has no plans to give up on AR. In fact, the company is going to resume business by making a new licensing deal with the competitor company Magic Leap.

Reportedly, Meta and Magic Leap are going to close down an IP licensing and manufacturing deal. In this way, both these companies will be able to form an alliance against Apple’s presence in AR. The details of the agreement are not yet available. However, there are possibly fewer chances that the two companies introduce a joint product.

Meta could hand over the VR headsets production part to Magic Leap. In this way, Meta will have the opportunity to manufacture VR products domestically. Thus, reducing the reliance on Chinese manufacturers. Some reports indicate that Meta will debut its AR glasses in 2027.

Meta and Magic Leap are going to sign a deal

None of the two companies have responded to this news. However, a report from Financial Times indicates that Magic Leap has marked this partnership as a growing opportunity for the company. In the AR space, Magic Leap is believed to be one of the most creative startups. It is well-known for its optics. An increasing number of companies are interested in licensing their intellectual property and employing their proprietary manufacturing process, according to CEO Peggy Johnson’s blog post from last year.

Mark Zuckerberg, the CEO of Meta, had outlined his goals for the company’s future, with augmented reality playing a key role. Investors, however, are not pleased with this choice. As the business reported operating losses for AR and VR of $13.7 billion in 2022. Additionally, the IT behemoth lost $10 billion to Reality Labs in 2021.

In the upcoming years, Meta might also experience a rise in competition in the AR market. According to reports, Apple wants to get into the AR sector. Additionally, Samsung is establishing itself in the market by enhancing the AR capabilities of Galaxy devices.

Brain Curry

Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.

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