Meta’s metaverse project is facing a uncertain future after CEO Mark Zuckerberg slashed its budget by as much as 30%. The move came in response to concerns about the project’s viability, which has been plagued by skepticism from investors and users. Despite initial hype, the metaverse failed to gain traction, with many questioning its purpose and appeal. Meta is now shifting investment towards AI glasses and wearables, where it hopes to cement its dominance.
The concept of a metaverse was initially touted as a successor to the mobile internet, but it never gained much traction. The project’s goals were revised several times, including a goal of 500,000 monthly active users by the end of 2022, which was later reduced. Meta is now focusing on its Reality Labs division and virtual reality headsets.
Zuckerberg has stated that he still believes in the potential of virtual worlds, but even he acknowledges that aesthetics matter. The company is poaching Apple’s top designer to run a new studio for hardware, software, and AI integration. Meta’s investment in AI glasses and wearables is expected to be fueled by savings from metaverse cuts.
The financial return on AI investments remains uncertain, with Wall Street expressing concerns about Zuckerberg’s willingness to spend large sums on unproven tech. However, the CEO remains optimistic, stating that the risk of missing out on potential gains is higher than investing in the metaverse.
Source: https://edition.cnn.com/2025/12/04/business/meta-metaverse-stock-nightcap