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Meta's Metaverse Bet Falters, AI Takes Center Stage
12 Jun
Summary
- Meta's metaverse vision, once a pandemic-era focus, has largely failed.
- The company invested billions but is now cutting metaverse support.
- Meta is redirecting over $100 billion towards AI development.
The grand vision of an embodied internet, or metaverse, championed by Meta CEO Mark Zuckerberg, has failed to gain widespread traction.
Initially, during the COVID-19 pandemic lockdowns, Zuckerberg announced a significant pivot for the company, formerly Facebook, towards building the foundational technologies for the metaverse. This involved virtual reality headsets and legless avatars.
However, this bet has not paid off. After substantial investments, Meta is reportedly reducing funding for its metaverse division by up to 30% by 2026. Support for platforms like Horizon Worlds is dwindling.
Instead, Meta is now shifting its focus and significant capital towards Artificial Intelligence. The company plans to invest upwards of $100 billion in AI development. Executives suggest the future of the metaverse may hinge on the outcomes of this new AI buildout.
