๐ค Meta Recalculates After ~$70B Metaverse Loss โ Prioritizes AI, RayโBan Meta Smart Glasses
After **four years and roughly $70โฏbillion in cumulative losses from its Reality Labs metaverse ambitions, Meta Platforms (owner of Facebook, Instagram & WhatsApp) is pivoting its strategy toward artificial intelligence and AIโpowered devices such as RayโBan Meta smart glasses, while scaling back metaverse spending.
๐ Key Facts:
๐ Massive Metaverse Losses: Metaโs Reality Labs division, responsible for VR, AR and metaverse products, has accumulated tens of billions in operating losses, driving a reassessment of priorities.
๐ Strategic Reallocation: The company is reportedly planning up to a 30โฏ% budget cut to metaverse projects in 2026, redirecting resources toward generative AI and wearable hardware like smart glasses.
๐ถ๏ธ RayโBan Meta Smart Glasses: Meta continues pushing its AIโenabled RayโBan Meta glasses, which have seen revenue traction but face increasing privacy and regulatory scrutiny in markets like the EU.
๐ Why It Matters:
โ๏ธ New Strategic Focus: Metaโs shift recognizes that AI ecosystems and nextโgen devices may offer clearer monetization paths than immersive metaverse platforms with weak adoption.
๐ง AI as Core Growth Engine: Investment in AI infrastructure and products (e.g., AI assistants, AI integration across Meta apps and hardware) has become central to the companyโs future roadmap.
๐๏ธ Regulatory Eyes on Glasses: As smart glasses become more visible, regulators โ especially in the EU โ are scrutinizing how AI and camera features protect privacy.
Metaโs deep metaverse losses have forced a strategic reset: AI and smart wearable devices now take precedence over virtual worlds โ a move likely to shape its technology trajectory into 2026 and beyond.
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