Meta is shifting some of its investments in the metaverse into AI-powered glasses and wearables, hoping to capitalize on “momentum” in that segment, a company spokesperson said.
Over the past decade, Meta has invested billions of dollars to build the metaverse, which allows people to interact in virtual reality. However, the tech giant has had difficulty convincing investors of the viability of the nascent technology.
Bloomberg first reported on Thursday that Meta would reduce its investment in metaverse by up to 30%. Its shares rose more than 3.4% following the news.
The strategic shift towards the Metaverse was the reason Facebook changed its name to Meta in 2011.
“We are not planning broader changes than these,” said the Meta spokesperson, without commenting on whether the change in investments will lead to layoffs.
Now, the company is looking to build on an early lead in AI-enabled glasses, following positive reception to the latest models launched in September.
The glasses feature a small screen inside the lens that can describe what you see and even translate text. This feature is widely considered an advancement that improves the usefulness of the technology while making the design more compact.
Many industry players, including companies in China, have also joined the race to make smart glasses and wearable technology.
Meta has struggled in recent years to convince investors about the metaverse. Many have been skeptical about his vision of an immersive digital space and the demand for virtual reality (VR) headsets, which are key to that technology.
The company has invested heavily in this type of headset and in its metaverse platform, Horizon Worlds, where users can interact as avatars.
Demand for other technologies, especially artificial intelligence (AI), also increased as Meta prioritized the metaverse.
Recently, the company has shifted its focus toward building large AI models, like the software built into WhatsApp, and developing smart devices like its new glasses.
