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Home / Business and Economy / Meta Slashes Metaverse, Bets Big on AI Dividends

Meta Slashes Metaverse, Bets Big on AI Dividends

7 Dec

•

Summary

  • Meta begins quarterly cash dividends of $0.525 per share.
  • Meta cuts metaverse spending by 30% to fund AI growth.
  • AI initiatives like Segment Anything Model 3 advance.
Meta Slashes Metaverse, Bets Big on AI Dividends

Meta Platforms has announced a significant strategic shift, initiating a quarterly cash dividend of $0.525 per share for its Class A and Class B stock, payable on December 23, 2025. This move coincides with a substantial reduction in metaverse spending, cut by approximately 30%, to bolster investments in artificial intelligence. The company is prioritizing AI initiatives like the Segment Anything Model 3 and the Limitless acquisition, alongside developing AI-powered wearables.

This redirection of funds marks a clear pivot towards achieving near-term profitability and emphasizing AI-led product development. The reduction in Reality Labs' budget, a segment that has incurred significant cumulative losses, is particularly noteworthy. Resources are being strategically reallocated to enhance AI models and wearables, aligning with the company's goal of improving AI-driven engagement and ad performance across its social media platforms.

While this fiscal adjustment is expected to improve margins in the immediate future, the company's investment narrative now hinges on its core advertising and social platforms' continued monetization. A key risk remains the potential for AI infrastructure spending to outpace revenue growth, impacting free cash flow. Nevertheless, Meta projects substantial revenue and earnings by 2028, with fair value estimates suggesting significant potential upside.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
Meta Platforms' first quarterly cash dividend of $0.525 per share is payable on December 23, 2025, to shareholders of record as of December 15.
Meta Platforms is cutting its metaverse spending by approximately 30% to reallocate resources towards advancing its artificial intelligence initiatives.
Meta Platforms is advancing AI initiatives such as the Segment Anything Model 3 and the Limitless acquisition, alongside developing AI wearables.

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