Meta is reducing part of its metaverse investment and moving funds to AI glasses and wearable devices. Bloomberg reported the company may cut metaverse spending by up to 30%.
Meta has begun shifting some of its metaverse funding to new AI glasses and wearables. A company spokesperson said the decision follows strong growth in the AI wearable segment.
For more than 10 years, Meta has spent billions trying to build the metaverse, a virtual world where users interact through VR. But the company has struggled to convince investors about the future of that technology.
Bloomberg reported that Meta plans to cut metaverse spending by as much as 30%. Following the report, Meta’s stock jumped more than 3.4%.
The company did not confirm whether the investment shift will lead to layoffs. However, it said there will be no major changes beyond the funding adjustments.
Meta now wants to build on the strong reception of its new AI-enabled glasses. The latest models, released in September, feature a tiny display inside the lens. The glasses can describe what they see, recognise objects, and translate written text.
This is viewed as a breakthrough that makes the glasses more practical and easier to wear.
Firms from China and other parts of the world are also racing to produce smart glasses and wearable gadgets. The market is becoming more competitive as companies shift focus to AI-powered devices.
Meta has faced challenges convincing investors to support its metaverse vision. Many have expressed doubts about the demand for VR headsets and the long-term future of immersive virtual spaces.
The company has invested heavily in VR devices and Horizon Worlds, its metaverse platform where users interact as avatars.
While interest in virtual reality has slowed, demand for artificial intelligence tools has grown sharply. Meta is now investing in large AI models and AI software integrated into its platforms, including WhatsApp.
The company is also working on more smart devices, such as its new glasses, as part of its shift toward practical AI technology.
