Meta Shifts Investment from Metaverse to AI Glasses and Wearables
Meta is reallocating investment from its metaverse initiatives to focus more on AI glasses and wearables, aiming to capitalize on the growing momentum in AI-enabled devices. Bloomberg reported that Meta could reduce its metaverse investment by up to 30%, a strategic shift that followed years of heavy spending on headsets and its Horizon Worlds platform.
The move came amid investor skepticism about the metaverse's potential returns, and Meta's shares rose about 3.4% after the news of this investment shift was announced. A Meta spokesperson clarified that there would be no broader changes beyond the reallocation and did not comment on any layoffs.
Meta plans to build on an early advantage in AI-enabled glasses, which have received positive reception since models were launched in September. These glasses include a lens display capable of describing scenes and translating text, positioning Meta competitively in the global market for smart glasses and wearables—a market that also features strong competition from Chinese and other international firms.
Alongside developing these smart gadgets, Meta's strategy includes building large AI models and integrating AI into products like WhatsApp, signaling a broader pivot toward AI integration across its product range.
