Facebook Parent In Talks With Magic Leap Over Augmented Reality Deal

Facebook's parent company Meta is reportedly in discussions with augmented reality start-up Magic Leap to establish a multiyear agreement for intellectual property licensing and contract manufacturing in North America. While the partnership is not expected to result in a joint headset, Magic Leap's technology could play a crucial role in Meta's ambitious metaverse project as it seeks to compete with Apple's upcoming mixed reality device. The Financial Times reports: Magic Leap produces custom components, including high-tech lenses and associated software, which are key technologies that may be required to build a metaverse. Two former employees said Magic Leap's "biggest asset" is the sophistication of its "waveguides" -- technology that allows thin glass in front of the user's eyes to conjure up realistic images at different depths. Meta sells nearly 80 per cent of all VR/AR headsets, thanks to its VR Quest models. But the market itself is small -- fewer than 9mn units sold last year, according to IDC -- a tenuous lead given Apple's expected entry into the market during its developer conference next month. The company told the Financial Times: "Given the complexities of developing true augmented reality technologies and the intricacies involved with manufacturing these optics, as well as the issues many companies experience with overseas supply chain dependencies, we have entered into several non-exclusive IP licensing and manufacturing partnerships with companies looking to enter the AR market or expand their current position."