Sesame, a conversational AI startup founded by the creators of Oculus, has raised $250 million in Series B funding to accelerate the development of its AI-powered smart glasses and conversational technology. The company also launched the beta version of its voice-first interface, positioning itself among the most anticipated entrants in the AI hardware space.
The funding round marks one of the largest investments in an AI wearable firm this year and signals growing investor confidence in the convergence of artificial intelligence and consumer technology. According to industry reports, Sesame’s valuation has surged past $1.5 billion following the latest round, underscoring the potential of AI-driven devices in reshaping personal computing.
Founded by Oculus co-founders Michael Antonov and Nate Mitchell, Sesame aims to redefine how people interact with technology by creating seamless, natural-language-based experiences. The company’s conversational AI engine is designed to understand context, maintain memory across interactions, and integrate with various digital ecosystems—an approach that could rival major players like Meta, Apple, and OpenAI in the race for the next generation of computing interfaces.
Antonov emphasized that Sesame’s mission goes beyond building another wearable. “We want to move past screens and apps toward an experience where people can simply talk to their devices and get things done,” he said. The startup’s product suite centers around lightweight, voice-activated glasses that enable users to access information, manage tasks, and communicate using AI without depending on traditional smartphones or displays.
The newly raised capital will be used to scale hardware production, enhance its core AI models, and expand the beta testing phase globally. Sesame has already begun distributing early units to select developers and users under an invite-only program, with a wider release expected in 2026.
Investors in the round reportedly include several prominent venture capital firms with deep experience in AI and consumer technology. While specific names were not disclosed, the participation of institutional investors familiar with large-scale product rollouts suggests a long-term bet on the wearable AI segment.
Industry analysts view Sesame’s approach as a natural evolution of the AI assistant category, bridging the gap between large language models and real-world, continuous interactions. By embedding conversational AI into wearable devices, the company seeks to create a more intuitive, context-aware interface that could serve both personal and professional use cases.
The timing of the funding aligns with growing competition in the space. Tech giants like Meta, Google, and Apple are actively investing in AI-enhanced wearables, including smart glasses and mixed-reality headsets. Meta recently expanded its Ray-Ban Meta smart glasses line with AI integration, while Google continues to invest in Gemini-based contextual AI tools.
However, Sesame’s differentiation lies in its independent ecosystem and focus on conversational depth rather than visual immersion. Unlike augmented reality headsets, Sesame’s product emphasizes voice-first interaction, low-latency processing, and natural dialogue, aiming to make AI companions part of everyday life.
According to early testers, the system is capable of executing multi-step tasks such as summarizing emails, scheduling meetings, generating reminders, and answering follow-up questions based on prior context—all through continuous conversation. The platform’s architecture is built on proprietary AI models optimized for multimodal understanding, allowing it to process speech, intent, and environmental cues simultaneously.
The company also stressed its commitment to privacy and security, with much of the processing handled on-device rather than through cloud-based servers. This local-first approach, Antonov explained, is meant to “minimize latency while keeping user data under personal control.”
Market experts suggest that the conversational AI wearables category could become a major growth area in the next three years, particularly as consumers seek alternatives to screen-heavy devices. A recent report by IDC projected that AI-driven wearables could reach a market value exceeding $30 billion globally by 2028.
Sesame’s beta rollout comes amid a broader wave of innovation in AI hardware, following OpenAI’s rumored plans for a voice-enabled device with Jony Ive and the ongoing expansion of Humane’s AI Pin. Yet, while many of these ventures are still refining their use cases, Sesame’s focus on productivity, simplicity, and conversational precision could give it a distinct edge.
Industry observers note that the company’s roots in virtual reality engineering may provide it with a technological advantage in building user-centric experiences. The founders’ track record at Oculus, which was acquired by Meta in 2014, demonstrates their ability to scale complex hardware ecosystems successfully.
For now, Sesame’s beta phase will determine how well its conversational AI performs in real-world environments. The startup plans to use user feedback to refine its models before launching commercially. Early feedback from developers suggests the system’s conversational fluidity and contextual retention are among its strongest features.
As the global race for AI-powered wearables intensifies, Sesame’s $250 million funding milestone marks a defining moment for the intersection of conversational AI and consumer hardware. By fusing natural interaction with cutting-edge design, the company hopes to make talking to technology as effortless as talking to another person — signaling a potential leap forward in the post-smartphone era.