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Avegant, a start-up in San Mateo, California, has built an LED light-engine that could enable device manufacturers to build small, stylish augmented-reality smart glasses.
Courtesy of Avegant

I recently tried a pair of prototype smart glasses from Avegant that gave me a glimpse of a future where we may be able to watch videos, get directions, see notifications and more, all through a pair of traditional-looking shades.

These sorts of glasses may be the next big thing as companies like Facebook, Snap, Amazon, Microsoft, Apple and others look beyond phones.

I’ve worn Google Glass, the Microsoft Hololens, Snap’s Spectacles and, most recently, Facebook’s Ray-Ban Stories glasses. But those all have shortcomings. They’re either too big and bulky to wear everywhere (Hololens), don’t yet display anything on the lenses (Facebook) or look silly (Spectacles, Hololens, Google Glass.)

Big Tech companies will need smart glasses to look normal if they’re to have any chance at success. So they’re desperately looking for a display component that is small and can be manufactured and shipped in the next year or two, Avegant CEO Edward Tang told CNBC. 

Avegant doesn’t make smart glasses, but it put together a prototype pair to demonstrate the capabilities of a new LED augmented-reality light engine that the company unveiled to the public this fall. And I was impressed.

Here’s what you need to know.

The problem with current ‘smart’ glasses

CNBC | Magdalena Petrova

A lot of companies are building smart glasses, but they’re all taking different approaches. It’s sort of a mess. Here’s a quick recap:

  • Microsoft’s $3,500 Hololens and the $2,295 Magic Leap 1 are the most advanced but they’re bulky and more akin to goggles.
  • Amazon offers the $249.99 Echo Frames, but they just let you talk to Alexa and you don’t see any augmented reality visuals through the lenses.
  • Facebook’s $299 Ray-Ban Stories glasses can be used to take photos and videos but little else. The latest version of Snap’s Spectacles offers some AR visuals, but it isn’t fashionable and is only available to social media creators.
  • Google repurposed its $999 Glass device for enterprise customers after it was dismissed by the public due to privacy concerns.
  • Apple is also reportedly working on its own glasses, but it’s still unclear when they’ll be unveiled let alone released to the public.

Avegant thinks it has a solution that might help companies build a product regular people will want to buy.

Its new light engine, which is thinner than a pencil and weighs as much as a large paper clip, fits within the hinge and temple of eyeglasses where it can show high-definition visuals to the wearer. The light engine could enable some companies that don’t have huge in-house hardware engineering teams to build glasses that are as stylish and small as a pair of Ray-Bans but offer the visual capabilities dreamed up in science fiction films like “Terminator.”

A glimpse at the future

I demoed the light engine in October when Tang handed me the prototype glasses his team built. They were thin and looked like any normal pair of glasses except that they were tethered to a smartphone by a cable. The prototype is intended to demonstrate just how small a hardware manufacturer can make a pair of glasses using Avegant’s light engine.

“We’re getting our stuff ready to have the smallest manufacturable display for these customers,” Tang said. 

I put the glasses on. A translucent blue square came on at the center of my field of view, showing a display that was overlaid on top of what I was seeing in real life. Then the demo started. 

The glasses began to cycle through different visuals. The small translucent screen showed me the weather, a stock chart and a text message conversation. I was looking in the direction of Tang and could see him, but the visuals also appeared on top of him in crystal clarity. It was true augmented reality. 

The highlight of the demo was when the glasses began to play a video. It was a snippet of a soccer match from this summer’s Euro 2020 tournament. I saw the green grass, the vast crowd and the players passing the ball to one another before the forward blasted a goal into the back of the net. The game looked as good and as big as it would if I was watching at home on my living room TV or sitting with friends at a sports bar.

The Avegant light engine offers a 30-degree field of view and appeared like a rectangle in the middle of my line of sight.

I handed the pair of glasses back to Tang, who put them on and began watching the demo. I could hardly tell he was watching anything, though I noticed a subtle hint of blue light on the lens. It appeared as if he was daydreaming.

But there are still drawbacks. Manufacturers who use the Avegant light engine will have to determine how much battery life they want their smart glasses to have. The more battery life, the bulkier the glasses will be. Likewise, a 30-degree field of view is on a par with the first Hololens, but it’s a smaller window than Microsoft’s Hololens 2.

The reality

Facebook’s Ray-Ban Stories glasses can take photos and videos through cameras at each corner of the device’s frames.
Courtesy of Ashley Bogdan

Components like Avegant’s may help some tech companies develop smart glasses people will want to wear. But it’s still early days and skeptics don’t think we’ll have normal-looking smart glasses anytime soon.

“The long-term vision here is to get rid of your phone in your hand, and you’ll wear your phone on your face,” Kevin Irwin, chief investment officer at Knollwood Investment, said. Irwin is an investor in Avegant. 

Avegant isn’t yet mass-producing its light engine. It envisions a business model in which it will sell the component to companies that can build it into their smart glasses.

Larger companies may not even need Avegan’ts technology, explained Karl Guttag, an expert on augmented reality display devices.

“Facebook and Apple are ground-up companies — they’ve got phenomenal, huge teams working on this stuff,” Guttag said. “They don’t need an Avegant, if you get my drift, whereas a Snap might because they’re not really in this. They’d be looking to get a component.”

Guttag also has his doubts about smart glasses replacing smartphones anytime in the near future, which would limit Avegant’s prospects. 

“The expectation that these things are going to be like Ray-Bans is off the chart far away,” Guttag said. “Now something like what Avegant’s engine does could get you something that is moderately stylish. It’s going to be a little bigger and bulkier but not all the way there.”

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Google hit with EU antitrust investigation over use of online content for AI

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Google hit with EU antitrust investigation over use of online content for AI

Google was on Tuesday hit with an EU antitrust investigation over its use of online content for AI purposes, marking the latest in a series of crackdowns from the bloc on regulating U.S. big tech companies. 

The European Commission said it was investigating whether Google had breached EU competition rules by using the content of web publishers, as well as content uploaded on the online video-sharing platform YouTube, for AI purposes.

The probe will examine whether Google is distorting competition by imposing unfair terms and conditions on publishers and content creators, or by granting itself privileged access to that content and placing developers of rival AI models at a disadvantage, the Commission said. 

“AI is bringing remarkable innovation and many benefits for people and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies,” said the bloc’s commissioner for competition Teresa Ribera.

“This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators, while placing rival AI models developers at a disadvantage, in breach of EU competition rules.”

The Commission said it would investigate to what extent the generation of AI Overviews and AI Mode by Google is based on web publishers’ content without appropriate compensation and without the possibility for publishers to refuse without losing access to Google Search.

In September, the EU fined Google nearly 3 billion euros ($3.4 billion) for breaching antitrust rules by distorting competition in the advertising technology industry.

At the time, Google’s global head of regulatory affairs, Lee-Anne Mulholland said the EU decision was “wrong” and the firm would appeal. “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before,” she said.

EU vs. U.S. big tech

The move follows a slew of actions the bloc has taken against U.S big tech companies in recent days. 

The Commission hit Elon Musk’s social media app X with a 120-million-euro ($140 million) fine on Friday for breaching transparency obligations around its advertising repository and “the deceptive design of its ‘blue checkmark.'”

Musk called for the European Union to be abolished in response, with key Republican officials also criticizing the decision.

Last week the EU also announced it had opened an antitrust investigation into Meta over its new policy on allowing AI providers’ access to WhatsApp, which it said may breach the bloc’s competition rules.

CNBC has approached Google for comment.

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Tata, Intel deepen India semiconductor push with pact on chip supply chain and AI PCs

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Tata, Intel deepen India semiconductor push with pact on chip supply chain and AI PCs

Signage for Tata Electronics Pvt Ltd. at the company’s factory in Hosur, Tamil Nadu, India, on Tuesday, Aug. 5, 2025.

Bloomberg | Bloomberg | Getty Images

Tata Electronics has lined up American chip designer Intel as a prospective customer as the division of Mumbai-based conglomerate Tata Group works to expand India’s domestic electronics and semiconductor supply chain. 

Under a Memorandum of Understanding, the companies will explore the manufacturing and packaging of Intel products for local markets at Tata Electronics’ upcoming plants.

Intel and Tata also plan to assess ways to rapidly scale tailored artificial intelligence PC solutions for consumers and businesses in India. 

In a press release on Monday, Tata said that the collaboration marks a pivotal step towards developing a resilient, India-based electronics and semiconductor supply chain.

“Together [with Intel], we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity,” said N Chandrasekaran, Chairman of Tata Sons, the principal investment holding company of Tata companies. 

Tata Electronics, established in 2020, has been investing billions to build India’s first pure-play foundry. The facility will manufacture semiconductor products for the AI, automotive, computing and data storage industries, according to Tata Electronics

The firm is also building new facilities for assembly and testing. 

India, despite being one of the world’s largest consumers of electronics, lacks chip design or fabrication capabilities. 

However, the Indian government has been working to change that as part of efforts to reduce dependence on chip imports and capture a bigger share of the global electronics market, which is shifting away from China.

Under New Delhi’s “India Semiconductor Mission,” at least 10 semiconductor projects have been approved with a cumulative investment of over $18 billion.

Intel CEO Lip-Bu Tan said the partnership with Intel was a “tremendous opportunity” to rapidly grow in one of the world’s fastest-growing computer markets, fueled by rising PC demand and rapid AI adoption across India.

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CNBC Daily Open: Investors are loving the Paramount-Warner Bros-Netflix drama

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CNBC Daily Open: Investors are loving the Paramount-Warner Bros-Netflix drama

A drone view shows a sign for Paramount in front of the Hollywood sign in Los Angeles, California, December 8, 2025.

Daniel Cole | Reuters

Paramount Skydance on Monday launched a hostile takeover bid for Warner Bros. Discovery, following Netflix’s announcement last week that it had reached a deal to buy the HBO owner.

The company is “here to finish what we started,” CEO David Ellison told CNBC, upping the ante with a $30-per-share, all-cash offer compared to Netflix’s $27.75-per-share, cash-and-stock offer for WBD’s streaming and studio assets.

Investors were certainly pleased, sending Paramount shares 9% higher and WBD’s stock up 4.4%.

Another development that traders cheered was U.S. President Donald Trump permitting Nvidia to export its more advanced H200 artificial intelligence chips to “approved customers” in China and other countries — so long as some of that money flows back to the U.S. Nvidia shares rose about 2% in extended trading.

Major U.S. indexes, however, fell overnight, as investors awaited the Federal Reserve’s final rate-setting meeting of the year on Wednesday stateside. Markets are expecting a nearly 90% chance of a quarter-point cut, according to the CME FedWatch tool.

Rate-cut hopes have buoyed stocks. “The market action you’ve seen the last one or two weeks is kind of essentially baking in the very high likelihood of a 25 basis point cut,” said Stephen Kolano, chief investment officer at Integrated Partners.

But that means a potential downside is deeper if things don’t go as expected.

“For some very unlikely reason, if they don’t cut, forget it. I think markets are down 2% to 3%,” Kolano added.

In that case, investors will be waiting, impatiently, for the Fed meeting next year — hoping for a more satisfying conclusion.

What you need to know today

U.S. stocks slid on Monday. Major indexes closed lower, even though technology stocks, such as Broadcom, Confluent and Oracle, had a good showing. The pan-European Stoxx 600 closed flat, but defense stocks broadly rose.

Paramount Skydance makes hostile bid for Warner Bros. Discovery. The company made a $30-per-share, all cash, tender offer to WBD shareholders, following Netflix’s acquisition deal. Here’s what to expect from Paramount and Netflix as competition intensifies.  

Trump allows Nvidia to sell H200 chip to China. But that’s only if the U.S. gets a 25% sales cut, the White House leader said in a Truth Social post on Monday. Trump added that Chinese President Xi Jinping had “responded positively” to the proposal.

Berkshire Hathaway leadership shuffle. Todd Combs, investment manager and Geico CEO, will be leaving for JPMorgan Chase, while Berkshire will be adding a general counsel and a president overseeing consumer, service and retail units.

[PRO] Ray Dalio’s views on the market. The Bridgewater Associates founder told CNBC that he would bet on AI — but in different way.

And finally…

A cargo ship loaded with containers departs from Qingdao Port in Qingdao City, Shandong Province, China, on December 4, 2025.

Costfoto | Nurphoto | Getty Images

China’s trade surplus tops $1 trillion despite Trump’s attempt to contain it. Here’s what that means

China’s trade surplus roared above $1 trillion in November for the first time ever, despite the ongoing global trade war that has resulted in a steep drop in exports to the U.S. In the first 11 months this year, China’s overall exports grew 5.4% compared to the same period in 2024 while imports fell 0.6%.

The rebound in export growth would help mitigate the drag from weak domestic demand, putting the economy on track to deliver the “around 5%” growth target this year, said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.

— Anniek Bao and Jeff Cox

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