Meta Platforms reportedly entered talks with mixed reality headset maker Magic Leap over a potential partnership to work on mainstream metaverse products, as part of the technology giant’s ongoing push in the segment.

Financial Times (FT) reported discussions are at an early stage, with Meta Platforms’ looking at how Magic Leap could provide intellectual property licensing and manufacturing agreements in North America.

Magic Leap has been pushing its metaverse device credentials in recent times, and names Audi and Nvidia among its business clients on its website. In late 2021, the company raised $500 million to roll out its Magic Leap 2 headset, as well as boost its AR offering for enterprises.

A partnership between Magic Leap and Meta Platforms may not result in a jointly developed headset, but it could help the latter advance its own hardware such as the Quest headset offering, a source added.

Magic Leap told the FT partnerships were becoming a “significant line of business and growing opportunity” for the company.

Meta Platforms could also use a partnership with Magic Leap to reduce dependence on China for manufacturing, while the company was also linked to a buyout of Magic Leap in 2020.

On an earnings call, Meta Platforms boss Mark Zuckerberg reaffirmed its commitment to its metaverse unit despite revenue loss. The company recently announced a massive investment in AI infrastructure, which it claimed will support its metaverse play.