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Zuckerberg Eyes End to Reality Labs' Multibillion-Dollar Deficit
29 Jan
Summary
- Meta's Reality Labs division is expected to see reduced losses.
- AI glasses sales have more than tripled in the past year.
- The company is shifting investment from VR to AI wearables.
Meta's Reality Labs division, responsible for the company's metaverse ventures, is nearing a turning point in its financial performance. CEO Mark Zuckerberg recently indicated that the division's substantial multibillion-dollar losses are expected to decrease over time. He projected that 2026 losses will be similar to the previous year, marking a potential peak before a gradual reduction begins.
This strategic shift involves redirecting the majority of investment toward AI glasses and wearables. Zuckerberg emphasized that the company is focusing on making its VR ecosystem profitable in the coming years. This pivot follows significant changes, including over a thousand layoffs from Reality Labs earlier this month and the closure of VR studios.
Meta is now doubling down on its smart glasses and wearables, aligning with Zuckerberg's vision of achieving AI "superintelligence." Sales of these smart glasses more than tripled in 2025. Future AI glasses are envisioned to assist users throughout their day by seeing, hearing, and interacting with them, offering real-time information and custom interfaces.
The company has also paused plans for third-party Horizon OS headsets and is retiring its VR meeting app. This focused approach aims to create a more profitable and integrated ecosystem for Meta's future product lines.
