Meta is negotiating a multi-year agreement with AR company Magic Leap, and will continue to invest billions of dollars to build the Avatar Metaverse

Facebook parent company Meta is in talks with augmented reality startup Magic Leap for a multi-year deal, according to the Financial Times. Meta will continue to spend billions of dollars building out its Avatar metaverse world.

Meta is exploring ways for Magic Leap to offer intellectual property licensing and contract manufacturing in North America to help it build mainstream AR products, according to people familiar with the early discussions. Magic Leap produces custom components, including high-tech lenses and related software, which are key technologies that may be needed to build the Metaverse.