According to reports, social media giant Meta plans to cut up to 30% of its metaverse spending, redirecting funds towards augmented reality glasses and artificial intelligence. This decision has not yet been finalized, but the layoff plan may affect the Reality Labs department, which is primarily responsible for metaverse spending.
The budget may be adjusted in January, and Meta is expected to shift resources towards the development of augmented reality glasses. Following this announcement, Meta's stock rose over 5% at the opening on Thursday, closing up 3.4%.
Since Facebook was renamed Meta in 2021 and invested heavily, interest in the technological development of the metaverse has gradually diminished, as tech companies focus more on the trend of artificial intelligence.
The competition in the metaverse is cooling
Meta plans to cut the budget for its virtual reality department, partly because the expected hype around the technology has not reached the anticipated level of competition. According to sources, Apple and Google competed to develop virtual reality devices in 2021, but have since slowed down, reducing the pressure felt by Meta.
However, other companies are still entering the metaverse space. The AI startup Infinite Reality has acquired Napster, which previously served music piracy, and plans to enter the music metaverse.
Meanwhile, the company DTTM Operations, owned by Donald Trump, applied for trademarks related to the metaverse and NFT market in February.
Meta focuses on virtual reality glasses
Although Meta's interest in the metaverse has waned, CEO Mark Zuckerberg stated on his Threads platform that the company will establish a new creative studio within Reality Labs, focusing on design, fashion, and technology.
"We are entering a new era where AI glasses and other devices will change the way we connect with technology," Zuckerberg said. "The key is to make these experiences feel naturally close to people," he added.
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