As the competition heats up in the emerging augmented reality space, Meta Platforms Inc. META is rumored to be considering a collaboration with Magic Leap to maintain its edge against Apple Inc. AAPL.
What Happened: Facebook-parent is reportedly engaged in discussions with Magic Leap to sign a multi-year intellectual property licensing and manufacturing agreement, according to Financial Times.
The report did not provide specific details of the negotiations, but it cited sources indicating that the partnership between the two tech companies will unlikely result in a jointly developed headset.
Instead, Magic Leap is expected to offer the Mark Zuckerberg-led company its optical technology and manufacturing assistance.
Meta did not immediately respond to Benzinga’s request for comments.
While Magic Leap did not confirm the rumors, it acknowledged that partnerships have emerged as a “significant line of business and growing opportunity” for the company, the report noted.
Why It’s Important: The timing of these latest rumors holds significance for various reasons.
Foremost, the Zuckerberg-led company is currently facing immense pressure from investors to demonstrate tangible results for the substantial investments made towards making metaverse the future of computing.
Second, Meta’s formidable rival, Apple, is expected to make its entry into the AR/VR market during its upcoming annual WWDC developers conference next month. The device has already garnered massive interest from netizens and tech experts like the former Meta employee and Oculus founder, Palmer Luckey.
Meanwhile, Reliance Industries, owned and led by India’s richest man, Mukesh Ambani, has also launched its first-ever virtual reality headset that costs just under $16.
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