Meta is reallocating a portion of its metaverse investment toward developing AI-powered glasses and wearable devices, aiming to take advantage of growing interest in this rapidly evolving segment, the company confirmed.
Over the past several years, Meta has spent billions attempting to build the metaverse — a virtual environment where users interact through VR technology. But despite the scale of spending, the company has struggled to convince investors that the concept can become profitable.
Bloomberg reported on Thursday that Meta could reduce its metaverse budget by up to 30%. Following the news, Meta’s shares rose more than 3.4%.
The company rebranded from Facebook to Meta in 2021 precisely to signal its commitment to the metaverse. However, a spokesperson said the firm is “not planning any broader changes beyond that,” though did not specify whether budget shifts might lead to layoffs.
AI glasses show early promise
Meta is now seeking to expand its lead in AI-enabled smart glasses after strong early feedback for the updated models launched in September. These glasses include a tiny display embedded in the lens, allowing the device to recognise objects, describe surroundings and even translate text — features widely viewed as a major step forward because they increase usability without adding bulk.
Competition is intensifying as companies worldwide, including major Chinese tech firms, accelerate development of smart glasses and wearable AI devices.
Metaverse faces ongoing scepticism
Despite Meta’s heavy investment in VR headsets and its metaverse platform Horizon Worlds, adoption has been slower than anticipated. Many investors remain cautious about the long-term demand for immersive virtual spaces.
Meanwhile, demand for artificial intelligence technologies has surged across the tech sector. After prioritising VR for years, Meta is now shifting more attention to its large-scale AI models — including tools integrated into WhatsApp — and to next-generation hardware like AI smart glasses.
