Zuckerberg slashes metaverse funds, routs focus to AI and gadgets

CEO Mark Zuckerberg plans to reduce resources for the metaverse after years of touting virtual worlds as the next big thing.

Reality Labs, the team behind the metaverse effort, has posted more than $77 billion in operating losses since 2020, and user interactions have declined in the technology. Its Horizon Worlds had around 300,000 monthly active users in 2022.

Meta has cut over 100 jobs in the metaverse division this year.

The social media giant is redirecting resources toward AI glasses and wearables. It has already created a “superintelligence” research lab, offered $100 million pay packages to attract top AI researchers, and hired around 50 people into the group.

Meanwhile, Meta’s Ray-Ban AI glasses have also accelerated, with EssilorLuxottica reporting sales of more than 2 million pairs and projecting production capacity of 10 million pairs annually by the end of 2026.

Investors reacted positively to the shift, sending Meta’s stock up more than 3% on Thursday.