Meta and Qualcomm have agreed to collaborate on the development of custom virtual reality chips for metaverse applications.

Meta and Qualcomm announced a collaboration on Friday to create custom chipsets for virtual reality products.

The two U.S. technology behemoths have signed a multi-year agreement to “collaborate on a new era of spatial computing,” which will make use of Qualcomm’s “extended reality” (XR) Snapdragon technology. Extended reality refers to technologies that combine the physical and digital worlds, such as virtual and augmented reality.

“We’re collaborating with Qualcomm Technologies on customised virtual reality chipsets — powered by Snapdragon XR platforms and technology — for our future Quest product roadmap,” said Meta CEO Mark Zuckerberg in a press release.

Meta’s line of virtual reality headsets is known as the Quest products. The Qualcomm Snapdragon XR2 chipset is currently used in the Meta Quest 2 headset.

Since its rebranding in 2021, Facebook-parent Meta has bet on the metaverse — a term that encompasses virtual and augmented reality technology — with the goal of having people working and playing in digital worlds in the near future.

Companies ranging from Apple to Samsung have designed their own custom processors to differentiate themselves from competitors and create better products than they could have with off-the-shelf chips.

Meta’s emphasis on custom chips makes sense as it seeks to differentiate its headsets and possibly create unique user experiences.

“Building virtual reality, unlike mobile phones, presents novel, multi-dimensional challenges in spatial computing, cost, and form factor,” Zuckerberg said. “These chipsets will enable us to continue pushing virtual reality to its limits and deliver incredible experiences.”

The length of the deal and the financial terms of the deal were not disclosed.

It comes as Meta prepares to launch a new virtual reality headset in October, despite losses in its Reality Labs division, which includes its VR business, widening in the second quarter.