Meta Shifts Investment Focus from Metaverse to AI Glasses and Wearables
Meta is shifting some of its investments from the metaverse to AI glasses and wearables to capitalize on growing momentum in this area.
Bloomberg reported that Meta may cut its metaverse investments by as much as 30%, a move that was followed by a rise of over 3.4% in Meta shares after the news.
This strategic shift comes after Meta's 2021 rebranding from Facebook to Meta, emphasizing a focus on AI-enabled glasses.
A Meta spokesperson stated that there are no broader changes planned beyond this shift in investments and did not comment on layoffs.
Meta aims to build on an early advantage in AI-enabled glasses following the positive reception of the models launched in September.
The glasses feature a lens display capable of describing what it sees and translating text, regarded as a breakthrough in usability and compact design.
Meta has faced challenges in convincing investors about the metaverse, with demand for VR headsets and its virtual world Horizon Worlds lagging behind expectations.
Consequently, the company has redirected its investment focus towards AI models and smart gadgets like the new glasses.
