Social media titan Meta (META) has acquired Limitless, a startup that makes an AI-powered wearable pendant. This deal helps Meta’s plan to create smart consumer devices that are powered by artificial intelligence. Dan Siroker, CEO and co-founder of Limitless, said in a blog post that both companies share the goal of bringing “personal superintelligence” to everyone, and that his team is excited to join Meta to make that goal a reality. However, the company didn’t say how much Meta paid.
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Meta plans to use Limitless’ technology to help build AI-powered wearables. Right now, Meta already works with Ray-Ban and Oakley, which are both owned by EssilorLuxottica (ESLOY), to create smart glasses. Limitless, which used to be called Rewind, makes a small device that clips to your clothes or hangs from a lanyard. It records conversations, then creates transcripts and searchable summaries through its app.
The product is part of a growing trend of AI tools that help boost memory and daily productivity. In addition, although Meta and Limitless will keep supporting current users, they will no longer sell the device to new customers, and current users will be asked to agree to new privacy terms. Prior to the acquisition, Limitless raised over $33 million from investors like Sam Altman and A16z.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 36 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $832.06 per share implies 23.7% upside potential.
