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report:-meta-in-talks-with-magic-leap-for-multiyear-ar-headset-tech-deal

Report: Meta in Talks with Magic Leap for Multiyear AR Headset Tech Deal

A report from the Financial Times maintains Meta is currently in talks with AR headset creator Magic Leap to strike a multiyear deal, which could include intellectual property licensing and contract manufacturing of AR headsets in North America.

The AR unicorn is said to possess valuable IP regarding custom components, including its optics, waveguides, and software.

It’s said a potential deal may also allow Meta to lessen its reliance on China for component manufacturing. In 2019, Magic Leap partnered with manufacturing solutions company Jabil to create a Guadalajara, Mexico plant which the report maintains can assemble headsets in “the tens of thousands a year.”

Magic Leap 2 | Photo by Road to VR

Citing people with knowledge of the talks, the report maintains however a specific joint Meta-Magic Leap headset isn’t expected.

While both companies didn’t comment on a potential partnership, Magic Leap said this to 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.”

Since it exited stealth in 2014, Magic Leap has released two AR headsets, Magic Leap 1 and Magic Leap 2, which have been compared in functionality to Microsoft’s HoloLens AR headsets.

The company has raised over $4 billion, with minority investors including Google, Alibaba, Qualcomm, AT&T, and Axel Springer. Its majority stakeholder is Saudi Arabia’s state-owned sovereign wealth fund.

In addition to Quest Pro mixed reality headset, Meta has confirmed it’s currently working on its next iteration of Quest, likely Quest 3, as well as its own AR glasses. Meta started real-world testing of Project Aria in 2020, a platform for training its AR perception systems and asses public perception of the technology.

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Meta & BMW Are Integrating AR/VR Headsets into Cars, Release Timeline Uncertain

Initially announced in 2021, Meta CEO Mark Zuckerberg shared an update on the company’s research partnership with BMW, which focuses on integrating AR and VR into vehicles to make people more productive, social, and entertained while traveling.

The ultimate aim in the BMW/Meta partnership is to accurately anchor virtual objects relative to the car’s motion by hooking into the tracking system of both the car and a Meta headset, which researchers say includes the Meta Quest Pro standalone mixed reality headset and the company’s in-development AR headset, Project Aria.

Without such a system in place, the headset’s rotational tracking would noticeably drift as the car makes turns and other adjustments, making it essentially unusable for anything but perfectly straight sections of road.

Check out the video detailing the research below:

Still considered a proof-of-concept prototype, Meta says the partnership has already overcome some key technical challenges, such as fusing the headset and car’s sensors to understand their relative position. That said, the companies don’t think it’s ready for the public just yet.

“It is too early to tell exactly how or when this technology will make it into customers’ hands, but we envision a number of potential use cases for XR devices in vehicles—from assisting the driver in locating their car in a crowded parking lot to alerting them to hazards on the road and surfacing important information about the vehicle’s condition,” said Claus Dorrer, Head of BMW Group Technology Office in the US. “The implications of future AR glasses and VR devices—for passengers as well as drivers—are promising. The research partnership with Meta will allow us to discover what immersive, in-vehicle XR experiences could look like in the future and spearhead the seamless integration of such devices into cars.”

AR and VR integration in cars isn’t an entirely new area of research. It’s been the sole focus of Audi-backed startup Holoride, which recently partnered with HTC to deliver in-car VR entertainment via HTC Vive Flow. Still, Holoride has been mostly grabbed headlines as a tradeshow mainstay; it hasn’t seen mass adoption yet despite only requiring a $200 retrofit pack, which enables Vive Flow owners to play VR in cars.

In the end, it seems car companies are now seeing the writing on the wall that riders will maybe very soon—but not right now—want to bring their own XR devices and actually use them in the car, just like you might a smartphone, albeit with more utility than any infotainment screen on offer.

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