Meta continues to invest heavily in virtual and augmented reality technologies for the metaverse, which CEO Mark Zuckerberg has described as a key company project. In Q4 2024, Reality Labs, the division responsible for metaverse development, reported an operating loss of $4.97 billion on revenue of $1.1 billion.
Wall Street analysts had projected an even greater loss of $5.497 billion on the same revenue, CNBC reports. Since 2020, Reality Labs’ total operating losses have exceeded $60 billion, according to company data.
Meta’s AI and AR Investments
Last week, Meta announced plans to invest between $60 billion and $65 billion in 2025 to expand its computing infrastructure for artificial intelligence, reminds NIXSOLUTIONS. Zuckerberg has previously emphasized AI’s role in metaverse development, including in products like the Ray-Ban Meta smart glasses, developed with EssilorLuxottica. The Reality Labs division also produces the Quest virtual reality headset series.
In 2023, Meta unveiled Orion, an augmented reality headset featuring AI integration and miniature projectors that display holograms over real-world views. Zuckerberg described Orion as “the next big platform after smartphones.”
Meta remains committed to advancing these technologies despite ongoing financial challenges. We’ll keep you updated on further developments.