Meta pivots to AI smart glasses as metaverse bet struggles
Meta is shifting some of its investments in the metadata space to AI glasses and wearables and hopes to benefit from “momentum” in that segment, a company spokesman said.
Over the last decade, Meta has poured billions of dollars into creating the meta database that allows people to interact in virtual reality. But the tech giant had difficulty convincing investors about the viability of the emerging technology.
Bloomberg first reported on Thursday that Meta would reduce its investment in the metaverse by up to 30%. Its shares rose more than 3.4% following the news.
The strategic shift to Metaverse was why Facebook changed its name to Meta in 2011.
“We are not planning any broader changes than that,” Meta’s spokesman said, without commenting on whether the change in investments would result in layoffs.
Now the company is trying to gain an early advantage in AI-powered glasses after the positive reception of the latest models released in September.
The glasses have a small screen inside the lens that can identify what it sees and even translate text. This feature is seen as a breakthrough that increases the usefulness of the technology while making the design more compact.
Many players in the industry, including companies in China, have also joined the race to produce smart glasses and wearable technology.
Meta has had a hard time convincing investors about the metaverse in recent years. Many were skeptical of the vision of an immersive digital space and the demand for virtual reality (VR) headsets that are key to this technology.
The company has invested heavily in such headsets and in Horizon Worlds, a metadata platform where users can interact as avatars.
While Meta prioritizes metadata, demand for other technologies, especially artificial intelligence (AI), has also increased.
The firm has recently shifted its focus to building large AI models, such as the software integrated into WhatsApp, and developing smart devices such as its new glasses.
