Zuck ghosts metaverse as Meta chases AI goldrush
Meta is clearly shifting its focus, as the company reported a staggering loss of $4.2 billion from its Reality Labs division in Q1 2025, marking a continued downturn for projects related to the metaverse. During a recent earnings call, CEO Mark Zuckerberg barely mentioned the metaverse, indicating a sharp pivot towards artificial intelligence (AI) as the new priority. Despite the losses, Meta’s core apps generated impressive revenue, leading to speculation about the future of its metaverse initiatives.
Key Points
- Meta’s Reality Labs faced a $4.2 billion loss in Q1 2025, continuing a trend of significant financial depletion.
- Zuckerberg’s recent earnings call focused heavily on AI, with not a single mention of the metaverse.
- Revenue from Meta’s core applications was up 16% year-on-year, highlighting a successful shift away from the metaverse.
- Reality Labs has reportedly laid off over 100 staff as part of a restructuring effort.
- Industry experts predict that the metaverse projects, like Horizon Worlds, may be shut down by the end of 2025.
Why should I read this?
If you’re keeping an eye on tech trends, this article serves up some juicy insights about Meta’s pivot from the metaverse to AI. It’s a reflection of shifting priorities in the tech world and could save you the hassle of wading through countless updates about Meta’s ongoing financial saga. Trust us, you’ll want to know how this giant is reshaping its strategy!