Meta Refocuses on AI Smart Glasses After Scaling Back Metaverse Investments

Meta has decided to reduce its investments in the metaverse by up to 30%, shifting its focus to the development of AI-powered smart glasses and wearables. The company has invested billions into the metaverse over the past decade, aiming to create a virtual reality space where people can interact as avatars. Despite these efforts, Meta has struggled to convince investors of the technology’s viability, and demand for virtual reality headsets has not met expectations. The move to cut back on metaverse investment was reported by Bloomberg and led to a 3.4% increase in Meta’s shares. The company’s new direction involves leveraging its early advantage in AI glasses, which feature a small display within the lenses that can describe scenes and translate text, gaining a positive reception in September. Meta is not making broader changes, but the spokesperson did not confirm if this shift would lead to layoffs. Meanwhile, AI technology has gained significant traction, prompting Meta to prioritize its work on AI models, including those integrated into WhatsApp, alongside its new AI-enabled smart gadgets.