Warby Parker Shares Surge 16%! Google's $150 Million Entry—Is a Major Shift Coming in the Smart Glasses Market?

TradingKey - During the Google I/O 2025 conference, Google (NASDAQ: GOOGL) announced it will invest up to $150 million in consumer eyewear brand Warby Parker (NYSE: WRBY). The two companies will collaborate on developing AI smart glasses powered by Android XR.

After this announcement, Warby Parker's stock experienced a significant boost, closing up by 15.63% on May 20, with an intraday gain nearing 16%, marking its largest intraday rise since 2022.

According to the cooperation agreement, Google committed an upfront $75 million to help cover the cost of Warby Parker's product development and commercialization. will also invest another $75 million if Warby Parker hits certain development milestones, and it will receive a portion of the company's equity.

The market is optimistic about Google's technological capabilities and financial backing, as well as Warby Parker's strengths in eyewear retail channels and fashion design. Analysts believe that this partnership could challenge Meta (NASDAQ: META) and Ray-Ban in the competitive landscape of smart glasses.

Previously, Meta partnered with EssilorLuxottica to launch Ray-Ban smart glasses. The second generation of this product has already sold over one million units in 2023, and there are plans for a third generation featuring a display set for release in 2025.

This collaboration between Google and Warby Parker is viewed as a key strategic move for Google's return to the smart glasses arena, filling the market gap left after Google Glass failed due to privacy controversies back in 2013.