Google Bets $100M on Gentle Monster’s 4% Stake—Smart Glasses 2.0 Incoming?

Google just dropped a nine-figure check to revive its augmented reality dreams—because the first face computers worked out so well.

The Deal:
$100 million buys Alphabet a 4% slice of Korean eyewear maker Gentle Monster. Translation: Glassholes are back, but this time they’ll look like $500 fashion accessories instead of cyborg headgear.

Why It Matters:
After flopping with Glass in 2013, Google’s betting AR won’t suck if you hide the tech behind designer frames. Smart move—nobody wants to look like they raided a sci-fi prop closet during Zoom calls.

Cynical Take:
Nothing says ‘we’ve got cash to burn’ like throwing VC money at hardware that already failed once. But hey, at least Wall Street will lap up the metaverse buzzwords.

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Smart Glasses as Fashion Accessories

The MOVE comes as projections for the extended reality (XR) wearables market range between $4.1 billion and $8.3 billion by 2030. Research from MarketsandMarkets, GlobeNewswire, and Grand View Research suggests compound annual growth rates of 27% to nearly 30%, driven by AR adoption, AI integration, and consumer-focused design.

Gentle Monster, known for its high-fashion frames worn by celebrities like Beyoncé, Rihanna, and Blackpink’s Jennie, reported 2024 revenue of 789.1 billion Korean won ($570 million). That brand equity is key to Google’s strategy: reframing smart glasses as fashion accessories, not just devices. As mentioned, previous efforts, such as Google Glass, failed to gain traction due in part to poor aesthetics and limited consumer appeal.

The upcoming smart glasses will feature Gemini AI integration, cameras, and displays, all designed to blend into everyday wear. Google is also partnering with Samsung (SMSN) for hardware and with Warby Parker and Gentle Monster on design. Talks are ongoing with Kering Eyewear as well.

Minor Revenues, Greater Ambitions

The deal also reflects competitive pressure. Meta has already sold about 2 million Ray-Ban smart glasses through its partnership with EssilorLuxottica. Google reportedly attempted to collaborate with EssilorLuxottica but shifted its focus to emerging players instead.

For Alphabet, this is another step in expanding its consumer hardware and AI footprint. Wearables are still a minor contributor to the company’s overall revenue, but this investment indicates continued interest in diversifying its product base beyond search, cloud, and ads. It also aligns with Google’s broader AI platform ambitions, especially through Gemini.

While smart glasses are not yet a mainstream product category, partnerships like this may help bridge the gap between functionality and design. Whether the product sticks will depend on more than just looks, it will need to be helpful in daily life.

What Is the Price Target for GOOG Stock?

On the Street, Google boasts a Strong Buy rating, with an average GOOG stock price target at $198.42. This implies an 18.29% upside.