Meta shifts some metaverse investments to AI smart glasses
December 5, 2025 01:15 pm
Meta is shifting some of its investments in the metaverse to AI glasses and wearables, hoping to capitalise on the “momentum” in that segment, a company spokesperson has said.
Over recent years, Meta has poured billions of dollars to build the metaverse, which lets people to interact in a virtual reality. However, the tech giant has struggled to convince investors of the viability of the nascent technology.
Bloomberg first reported on Thursday that Meta would cut its metaverse investment by as much as 30%. Its shares climbed more than 3.4% following the news.
The strategic shift to the Metaverse was the reason why Facebook changed its name to Meta in 2021.
“We aren’t planning any broader changes than that,” said Meta’s spokesperson, without commenting on whether the shift in investments will result in layoffs.
Now, the company is seeking to build on an early advantage on AI-enabled glasses, after the positive reception to the latest models launched in September.
The glasses feature a small display within the lens that can describe what it sees and even translate text. That feature is widely seen as a breakthrough that enhances the technology’s usefulness while making the design more compact.
Many players in the industry, including firms in China, have also joined the race to build smart glasses and wearable technology.
Meta has struggled in recent years to convince investors about the metaverse. Many have been sceptical over its vision for an immersive digital space and the demand for virtual reality (VR) headsets, which are key to that technology.
The company has invested heavily in such headsets and its metaverse platform, Horizon Worlds, where users can interact as avatars.
Demand for other technologies, especially artificial intelligence (AI), have also surged ahead while Meta prioritised the metaverse.
The firm has recently shifted its focus to building large AI models, like the software integrated into WhatsApp, and developing smart gadgets like its new glasses.
Source: BBC
--Agencies
