Meta is scaling back part of its metaverse investment and shifting more resources into AI-powered smart glasses and wearable tech, as the company aims to capture growing demand in this fast-moving market.
For years, Meta has invested billions in building the metaverse — a virtual world where people interact through VR. But despite the massive push, the company has struggled to convince investors that this technology will become mainstream anytime soon.
According to Bloomberg, Meta may reduce its metaverse spending by up to 30%, a move that immediately boosted its stock price by more than 3.4%. While Meta confirmed the investment shift, it declined to say whether this change could lead to job cuts.
The company gained early traction with its newest AI-enabled glasses, launched in September. These glasses include a built-in display that can identify objects, describe surroundings, and even translate text — features widely viewed as major breakthroughs. The compact design also makes them more appealing than traditional VR headsets.
As the global race for smart glasses heats up, companies from the US to China are competing to lead the wearable-tech revolution.
Meta’s pivot reflects its struggle to win investor confidence in the metaverse. Despite heavy spending on VR headsets and its Horizon Worlds platform, demand has not matched expectations. Meanwhile, interest in artificial intelligence has skyrocketed, prompting Meta to lean harder into AI development.
The company is now working on large AI models, integrating smarter features into apps like WhatsApp, and expanding its lineup of AI-driven devices, including the latest smart glasses.
