Overview
- Bloomberg reports that Mark Zuckerberg is evaluating reducing the metaverse unit’s budget by as much as 30%, a move Meta declined to comment on.
- The potential reduction is tied to 2026 budgeting plans, with additional 10% trims across departments and reported discussions of possible layoffs early next year.
- Reality Labs continues to post steep losses, including a $4.4 billion loss last quarter on $470 million in revenue.
- Meta is accelerating investment in artificial intelligence, building and leasing data centers such as the Hyperion project financed with Blue Owl and recruiting AI talent including former Apple designer Alan Dye and hires from OpenAI.
- Product focus is shifting toward AI-enabled wearables like the Ray‑Ban Display introduced in September, as IDC projects 2025 VR headset shipments of 14.3 million units and faster growth in non-display smart glasses.