Mark Zuckerberg rebranded for metaverse. $70B in losses, he's moving on
5 days ago
- #Meta
- #AI
- #Metaverse
- Mark Zuckerberg rebranded Facebook as Meta in 2021, focusing on the metaverse as the next frontier.
- The metaverse was hyped as a trillion-dollar opportunity but has since become a costly misadventure for Meta.
- Meta's Reality Labs division has incurred over $70 billion in losses since 2021.
- The metaverse lacks a compelling value proposition, with limited content beyond niche gaming.
- Meta plans to cut Reality Labs' budget by up to 30%, affecting projects like Horizon Worlds and Quest hardware.
- Wall Street reacted positively to the budget cuts, with Meta's stock rising over 4%.
- Meta is shifting investment from the metaverse to AI glasses and wearables, like Ray-Ban smart glasses.
- AI is now the focus, with Meta expected to spend around $72 billion on AI this year.
- Tech companies are reevaluating non-AI initiatives, with Meta's metaverse efforts being a notable example.