Overview of the Partnership Termination
On May 20, it was reported by Kedglobal that South Korean tech giant LG Electronics has terminated its collaboration with Meta in the field of extended reality (XR). Previously, the two companies had reached an agreement in February to jointly develop XR devices, including virtual headsets.
New Directions for LG Electronics
Insiders reveal that LG is now seeking new partners to provide operating systems and software for its planned XR devices, set to launch next year. Reports indicate that another American tech giant, Amazon, is a potential collaborator.
Background of the Collaboration
In late February, Mark Zuckerberg visited Seoul, South Korea, where he met with LG Electronics CEO William Cho and COO Kwon Bong-seok to discuss strengthening their cooperation in the XR device arena. At that time, LG Electronics stated that the leaders had agreed to jointly develop the next generation of XR devices, including a new XR headset, and to collaborate on artificial intelligence technologies. Both LG and Meta claimed they would leverage their respective hardware and AI expertise to launch an XR headset in the first half of 2025, aiming to surpass Apple’s latest mixed reality (MR) headset, the Vision Pro.

Understanding XR Technology
XR is an umbrella term that encompasses technologies such as virtual reality (VR) and augmented reality (AR). Industry sources indicate that LG has recently halted its development partnership with Meta regarding XR devices.
Reasons Behind the Termination
“There were some disagreements during discussions about XR devices. From what I understand, LG felt the synergy of the collaboration was not evident, leading to the request to terminate the partnership,” one insider stated.
If the collaboration had proceeded smoothly, LG would have integrated Meta’s Horizon operating system into its new XR devices, similar to the operating system used in Meta Quest Pro XR devices. In exchange, Meta could have utilized LG’s extensive global electronics sales network and advanced OLED panel technology to expand its XR device business.
LG’s Strategic Position in the XR Market
LG Display is developing MicroOLED technology, while camera module manufacturer LG Innotek is a leader in high-end lens production. Sources suggest that LG Electronics is actively seeking new partners for its XR headset business. Observers note that Amazon, with over 200 million subscribers to its streaming service Amazon Prime, could be a strong candidate. A robust streaming subscriber base is crucial for the successful launch of XR devices.
Given that Amazon lacks its own XR operating system, insiders speculate that LG’s next XR headset may utilize Google’s Android operating system. LG may also consider independent development, as they have the webOS operating system designed for televisions.
Future Prospects
Industry observers anticipate that Meta may seek to establish an XR partnership with China’s Tencent. According to market research firm IDC, the global XR device market is projected to grow from an estimated $18.2 billion this year to $35.7 billion by 2026.
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