What is the reason behind Meta and Snap's significant investments in AR glasses?

In September, CEO Mark Zuckerberg unveiled one of Facebook's most ambitious projects, an augmented reality prototype called Orion, while CEO Evan Spiegel introduced Snap's AR-enabled 5th-generation Spectacles at its annual partner summit a week earlier. Both companies envision a future where AR glasses will replace smartphones as the next generation of computing.

"Chris Cox, Meta's chief product officer, stated in an exclusive interview with CNBC's Julia Boorstin that the development represents a significant advancement in technology, bringing them closer to their goal of defining the future of computing."

For years, tech giants have been striving to achieve the dream of augmented and mixed reality.

Apple recently released its Vision Pro virtual reality headset for $3,500. Google was the first to market with Google Glass in 2013, an early attempt at an AR device, but faced challenges and was eventually canceled. Microsoft has invested in AR technology for over a decade, launching its HoloLens headset for enterprise in 2016, but it failed to gain traction and was discontinued in October.

"Gartner director analyst Tuong Nguyen stated, "We are in our adolescence, with a lot of potential, but we have not yet fully realized it.""

Although Snap and Meta have presented AR prototypes, they are not yet ready to sell these devices to the public due to the high cost of mass production. For the time being, Meta intends to use Orion as a developer device for its own employees.

"Zuckerberg stated at the Meta Connect conference in September that we will primarily utilize it internally to develop the software required, while also collaborating with a select group of external partners to ensure a diverse range of content."

Similarly, plans to invest in expanding its ecosystem by renting its AR glasses to developers who agree to pay $99 per month for a year.

"Spiegel stated that they have made an effort to reduce the entry point for individuals to begin using the new technology. He emphasized that this is a unique opportunity where both consumers and developers are eager for innovation."

Julia Boorstin of CNBC tries out Meta and Snap's augmented reality glasses and discusses the future of this innovative technology.