Meta Acquires AI Wearable Startup Limitless for Strategic Expansion

Meta Platforms Inc. has announced its acquisition of Limitless Inc., a Denver-based startup specializing in artificial intelligence wearables designed for recording conversations. While the financial terms of the deal remain undisclosed, Limitless has previously secured approximately $33 million in funding from notable investors, including First Round Capital, Andreessen Horowitz, NEA, and Sam Altman, the CEO of OpenAI Group.

Founded with the vision to enhance communication, Limitless developed a compact device that resembles a small pair of headphones. Measuring just 1.25 inches wide, this wearable can be clipped onto clothing or worn as a pendant. It records conversations, transcribes them, and uses AI to extract important details. The device employs an advanced technology known as beamforming, which uses a matrix of tiny microphones to focus on sound coming from a specific direction while filtering out background noise.

The microphones and their corresponding components, including a battery that lasts up to 100 hours between charges, are housed in a waterproof case. Users previously purchased the Limitless device for $99, with subscription plans available to enhance audio processing capabilities. Additionally, Limitless offered a desktop application called Rewind, which provided AI-driven search features for users’ files. Following the acquisition by Meta, the company plans to discontinue Rewind but will continue to support existing devices until at least December 2024, offering users complimentary access to its premium subscription plan.

Following the acquisition, speculation arises regarding Meta’s plans for the Limitless technology. The company may integrate the device into its expanding lineup of AI smart glasses. The latest eyewear product from Meta, the Meta Ray-Bans Displays, already includes a wearable accessory known as the Neural Band, allowing users to control the glasses with hand gestures. Analysts suggest that Meta’s next strategic move could involve the development or acquisition of a smart ring, which is currently a popular format for fitness tracking.

The acquisition of Limitless comes on the heels of reports indicating that Meta is poised to increase its investment in the wearables sector. This budget enhancement aligns with broader changes within the company’s Reality Labs group, which oversees its initiatives in eyewear and the metaverse. As part of this restructuring, Meta is reportedly considering laying off up to 30% of its workforce dedicated to metaverse projects.

Meta’s foray into the wearables market illustrates its ongoing commitment to technological innovation and consumer connectivity. The integration of Limitless technology may not only enhance Meta’s product offerings but also position the company for greater competition in the rapidly evolving landscape of AI and wearable technology.