What happened
Meta Platforms is reportedly reducing its Reality Labs metaverse division spending by up to 30% in 2026, following billions in losses since 2021. This re-prioritisation redirects capital towards artificial intelligence models, AI assistants, and associated hardware, specifically Ray-Ban smart glasses. The strategic adjustment, part of Meta's 2026 planning cycle, may result in workforce reductions as early as January and includes the recruitment of new AI executive talent.
Why it matters
This capital reallocation introduces a significant operational constraint for existing metaverse development roadmaps and associated procurement, increasing exposure to project scope reductions or cancellations. Platform operators and development teams previously focused on VR/AR hardware face a tightened dependency on AI-integrated wearables and models. This shift necessitates increased due diligence for IT security and compliance teams regarding new AI systems and data handling protocols, while reducing the visibility of long-term metaverse platform stability.
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