Major tech companies are placing their bets on smart glasses as the next big wave in AI hardware. Meta, with its successful Ray-Ban Meta glasses, is leading the charge, and others like Google are following suit. The goal is to redefine the human-computer interface, potentially replacing smartphones. This push comes as AI advancements drive the need for new device formats.

Meta's focus on smart glasses is evident in its investments, planning to spend up to $135 billion on capital expenditures this year. Snap is creating an independent subsidiary for its augmented reality smart glasses, Specs, seeking outside investment. The market is already seeing traction: Meta's glasses sales tripled last year, and the company holds a 70% share of the smart glasses market.

Google is partnering with Warby Parker and Gentle Monster to develop AI-powered glasses, while OpenAI acquired Jony Ive's AI device startup. Apple is also reportedly developing its own version. A key challenge is the reliance on smartphones for connectivity, but a move toward independence is expected.

This shift underscores a broader trend: companies are eager to find the next consumer gadget form factor. These glasses aim to provide new ways to interact with AI, potentially changing how people use technology. Investors should watch how these products are received, as a successful launch could create a new source of revenue.