TL;DR

Meta is shifting investments from its metaverse division to AI glasses and wearables, hoping to capitalise on the “momentum” in that segment following the positive reception of its latest Ray-Ban smart glasses.

A Strategic Pivot

Bloomberg first reported that Meta would cut its metaverse investment by as much as 30%, news that was welcomed by investors—the company’s shares climbed more than 3.4%. The strategic shift comes after years of heavy investment in the metaverse failed to convince investors of its viability.

“We aren’t planning any broader changes than that,” a Meta spokesperson confirmed, declining to comment on whether the shift would result in job losses.

The company’s 2021 rebrand from Facebook to Meta signalled its commitment to building an avatar-filled virtual reality where users could socialise, game and shop. However, the technology has struggled to gain mainstream adoption.

AI Glasses Gaining Traction

Meta is seeking to build on its early advantage in AI-enabled glasses. The latest models, launched in September, feature a small display within the lens that can describe what it sees and translate text—capabilities widely seen as a breakthrough that enhances usefulness whilst keeping the design compact.

Many players, including Chinese firms, have joined the race to build smart glasses and wearable technology, intensifying competition in the segment.

Looking Forward

For businesses watching the AI hardware landscape, Meta’s pivot suggests that practical, immediate-use AI applications are gaining priority over speculative virtual reality investments. The success of AI glasses could signal a broader shift in how consumers interact with AI assistants—moving from smartphones to wearable, always-available devices.

Source: BBC News