Google to invest $100 mn in Gentle Monster in smart glasses push

Google LLC has signed an agreement to invest about 145.0 billion won ($100 million) in Gentle Monster, the South Korean fashion eyewear brand that is also designing its upcoming extended reality (XR) glasses, according to investment banking sources on Friday.

The two sides are in the final stages of talks, with the deal set to give Google a 4% stake in the eyewear company popular among fashionistas for its bold, trendsetting designs.

The investment underscores Google’s ambition to present its XR glasses, expected to be released in 2026, as a fashion statement rather than a tech device as it returns to the smart glasses market after a decade.

Last month, Google unveiled a prototype of its XR eyewear, jointly developed with Samsung Electronics Co., at its annual I/O developer conference in California.

The glasses were jointly designed by Gentle Monster and US-based Warby Parker, with Samsung leading the hardware development. They run on Android XR, an operating system optimized for smart glasses.

Google’s partnership with Gentle Monster reflects lessons learned from its earlier failures. In 2013, Google launched augmented reality (AR) glasses, but the device failed to catch on due to its short battery life, overheating issues and high price tag.

Most notably, the device drew criticism for its awkward appearance. It featured an asymmetrical display mounted on one side, a bulky frame and a conspicuous camera, raising privacy concerns.

Google ultimately shelved the smart glasses project in 2015, just two years after its launch.

At the I/O developer conference in May, Google CEO Sundar Pichai said that smart glasses should function as fashion items, helping users forget they’re wearing them.

Google’s XR glasses will offer real-time navigation, live translation and interaction with AI-powered agents.

Gentle Monster, founded in 2011 by Kim Hankook, has evolved into a luxury brand with a strong presence in both Asia and the US. Its edgy frames and silhouettes have grown popular among Gen Z — those born between the late 1990s and early 2000s. 

It is also known as a brand favored by global celebrities, including American singer Kendrick Lamar and model Gigi Hadid.

In 2024, II Combined Co., the operator of Gentle Monster, raked in 789.1 billion won in revenue, with global sales accounting for 38%. Its operating profit exceeded 200 billion won, double the prior year.

Google is investing in Gentle Monster at a valuation of 3.6 trillion won, about triple its valuation in 2020, when it first joined the ranks of unicorns, which are companies with an enterprise value of 1 trillion won or more.

Meta Platforms Inc. has been leading the XR glasses race in partnership with fashion brands. In 2021, it launched Ray-Ban Meta in the iconic Ray-Ban frames with a built-in camera and open-ear audio.

The parent of Facebook Inc. is now developing a range of new smart glasses with various features in collaboration with sports eyewear brand Oakley and luxury fashion brand Prada.

Apple Inc. is also entering the market, developing smart glasses equipped with its own memory chips.

Last week, social media platform Snap Inc. unveiled a plan to launch smart glasses, dubbed Specs, in 2026.

Write to Jun-Ho Cha, Dae-Eun Choi and Jong-Kwan Park at chacha@hankyung.com
 

Yeonhee Kim edited this article.