Google Bets $100M in Gentle Monster for XR Glasses

C-Suite Notes: Tech giant's strategic investment underscores fashion-first approach to XR wearables as competition intensifies.

Gentle Monster's Maison margiela Collection, imaged captured from www.gentlemonster.com/

Google LLC has agreed to invest $100 million in South Korean fashion eyewear brand Gentle Monster, securing a 4% stake in the company that is co-designing its upcoming extended reality (XR) smart glasses, according to investment banking sources.

The deal, structured as a stock purchase agreement (SPA) with II Combined Co., Gentle Monster's parent company, is currently in final negotiations. Industry analysts view the investment as Google's commitment to prioritizing emotional user experience over mere functionality as it returns to the smart glasses market after a decade. This marks the tech giant's return to the smart glasses market after abandoning Google Glass a decade ago.

Building on Established Partnership

The investment builds on the collaboration unveiled at Google's I/O developer conference in May 2025, where the company demonstrated prototype XR glasses developed jointly with Samsung Electronics. Gentle Monster partnered with US-based Warby Parker to handle the design elements, while Samsung leads hardware development for the Android XR-powered device.

"Smart glasses must be both functional and fashionable to succeed," a Google official said during the earlier conference presentation. "With leading innovation partners on both hardware and design, we believe Android XR can redefine the wearable experience."

The glasses integrate Google's Gemini Live AI assistant and offer capabilities including real-time navigation, live translation, and voice-activated messaging through a transparent display embedded in the right lens.

Learning from Past Failures

Google's renewed focus on aesthetics reflects hard-learned lessons from its original Google Glass venture. Launched in 2013, the AR glasses failed commercially due to their awkward asymmetrical design, short battery life, overheating issues, and a $1,500 price tag that put them out of reach for most consumers.

The device's bulky frame and conspicuous camera also raised privacy concerns, contributing to Google's decision to shelve the project in 2015. At the recent I/O conference, CEO Sundar Pichai emphasized that smart glasses should function as fashion items, helping users "forget they're wearing them."

Google CEO Sundar Pichai

Gentle Monster's Growing Appeal

Gentle Monster, founded in 2011 by Kim Hankook, has established itself as a luxury brand popular among Gen Z consumers and celebrities including Kendrick Lamar, Gigi Hadid, Beyoncé, and Blackpink's Jennie, who serves as a global brand ambassador.

The company's parent, II Combined Co., generated 789.1 billion won in revenue in 2024, with international sales accounting for 38% of the total. Operating profit exceeded 200 billion won, doubling from the previous year.

Google's investment values Gentle Monster at 3.6 trillion won, roughly triple its 2020 valuation when it first achieved unicorn status with an enterprise value exceeding 1 trillion won.

>> [Related article on The CBO] Gentle Monster: Masterclass in Experiential Retail

Intensifying Market Competition

The partnership comes as competition in the XR glasses market heats up significantly. Meta Platforms currently leads the market, largely through its Ray-Ban Meta collaboration launched in 2021. The Facebook parent is expanding its smart glasses portfolio with partnerships involving sports brand Oakley and luxury fashion house Prada.

Meanwhile, Apple is developing its own smart glasses featuring proprietary memory chips, and Snap Inc. announced plans last week to launch its "Specs" smart glasses in 2026.

Analysts estimate the global XR market exceeded $100 billion in 2024 and could more than double by 2030. Market research firms project significant growth in the smart glasses segment, with forecasts ranging from $4.1 billion to $8.3 billion by decade's end.

The Google-Samsung-Gentle Monster collaboration extends the companies' "Project Moohan" partnership, which aims to release an Android XR-based headset later this year. The smart glasses represent a strategic expansion of that alliance into the broader wearables category.

As the XR glasses market prepares for significant growth, Google's substantial investment in Gentle Monster signals its determination to avoid the missteps that doomed Google Glass and establish a meaningful presence in the next generation of consumer wearables.