Meta to Slash Metaverse Budget by 30%, Shifting Focus Towards AI

Meta’s ambitious metaverse division, Reality Labs, is facing a significant blow as the company reportedly plans to cut its budget by up to 30% by 2026. This strategic shift signals a move away from the expansive vision of a fully realized virtual world and towards a more pragmatic, ROI-driven approach. Analysts speculate that Meta’s decision reflects a reallocation of resources toward technologies with clearer paths to profitability, including generative AI and consumer hardware like its Ray-Ban smart glasses.