Magic Leap has revealed a new strategic partnership with Google to work on extended reality (XR) technologies.

This collaboration may seem surprising in the tech world. Google has recently reduced its augmented and extended reality teams, while Magic Leap is known for one of the industry's significant failures. However, this partnership could mean more competition for Apple and Meta in the metaverse hardware and experiences market, which could be beneficial for the metaverse overall.

Magic Leap’s advances in optics will be combined with Google’s technology infrastructure, according to Magic Leap CTO Julie Larson-Green. She stated, "This partnership speeds up the power of AR by merging our optics skills with Google’s tech to keep enhancing immersive experiences for developers and customers. We look forward to growing XR's potential – merging the physical world with valuable, context-specific solutions."

Although the press release did not mention any specific products or services, it is likely that a new AR/XR headset could emerge, bringing needed competition to Meta and Apple, the current market leaders.

Sean Hollister from The Verge mentioned in an article that it’s unclear what Google gains from this deal. Google’s capability to create custom hardware is evident in its products like Pixel smartphones and smart speakers. Yet, their individual attempts with the Magic Leap and Google Glass headsets have mainly been known for their lack of success.

Hollister suggests that Magic Leap might possess a patent or technique that Google finds attractive. It’s also possible that Google wants to avoid starting a new AR/XR team after recent layoffs or falling behind major competitors.

Overall, this partnership could signify a new chapter in XR development, potentially offering fresh competition in a market dominated by Meta and Apple.