š¤ Meta Recalculates After ~$70B Metaverse Loss ā Prioritizes AI, RayāBan Meta Smart Glasses
After **four years and roughly $70āÆbillion in cumulative losses from its Reality Labs metaverse ambitions, Meta Platforms (owner of Facebook, Instagram & WhatsApp) is pivoting its strategy toward artificial intelligence and AIāpowered devices such as RayāBan Meta smart glasses, while scaling back metaverse spending.
š Key Facts:
š Massive Metaverse Losses: Metaās Reality Labs division, responsible for VR, AR and metaverse products, has accumulated tens of billions in operating losses, driving a reassessment of priorities.
š Strategic Reallocation: The company is reportedly planning up to a 30āÆ% budget cut to metaverse projects in 2026, redirecting resources toward generative AI and wearable hardware like smart glasses.
š¶ļø RayāBan Meta Smart Glasses: Meta continues pushing its AIāenabled RayāBan Meta glasses, which have seen revenue traction but face increasing privacy and regulatory scrutiny in markets like the EU.
š Why It Matters:
āļø New Strategic Focus: Metaās shift recognizes that AI ecosystems and nextāgen devices may offer clearer monetization paths than immersive metaverse platforms with weak adoption.
š§ 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 companyās future roadmap.
šļø Regulatory Eyes on Glasses: As smart glasses become more visible, regulators ā especially in the EU ā are scrutinizing how AI and camera features protect privacy.
Metaās deep metaverse losses have forced a strategic reset: AI and smart wearable devices now take precedence over virtual worlds ā a move likely to shape its technology trajectory into 2026 and beyond.
