Warby Parker shares surge after Google commits up to $150M to develop AI glasses

Warby Parker (NYSE:WRBY) said it has tied up with Google (NASDAQ:GOOG) (NASDAQ:GOOGL), under which the eyewear company will receive up to $150M investment to develop AI-powered glasses meant for all-day use.

WRBY shares were halted prior to the news release. Stock jumped 17.4% following the announcement on Tuesday.

At the ongoing Google I/O event, the tech giant showcased its XR glasses prototype and demonstrated capabilities like live translation, maps assistance, and reminders, among other things, and disclosed the Warby Parker partnership publicly. However, it did not mention the investment details.

Warby Parker said Google has committed up to $75M for product development and commercialization costs and will invest another $75M in the company if it hits certain collaboration milestones.

Warby will work closely with Google to launch a series of products over time, the first of which are expected after 2025, and will incorporate multimodal AI with prescription and non-prescription lenses.

“Warby Parker’s optical expertise, omnichannel approach, and history of leveraging technology to create beautifully designed products and exceptional customer experiences make them the perfect partner to co-create and launch this next generation of smart glasses on the Android XR platform,” Shahram Izadi, who is the GM and VP of XR at Google, said in a statement.