""For Reality Labs, we are directing most of our investment towards glasses and wearables going forward, while focusing on making Horizon a massive success on mobile and making VR a profitable ecosystem over the coming years," he said. "I expect Reality Labs losses this year to be similar to last year, and this will likely be the peak, as we start to gradually reduce our losses going forward.""
""Mark Zuckerberg says there's an end in sight to Reality Labs' years of multibillion-dollar losses following the company's layoffs to the metaverse division earlier this year. The CEO said he expects to \"gradually reduce\" how much money the company is losing as it doubles down on AI glasses and shifts away from virtual reality. Speaking during Meta's fourth-quarter earnings call, Zuckerberg was clear that the changes won't happen soon, but sounded optimistic about the division that lost more than $19 billion in 2025 alone.""
Meta is redirecting Reality Labs investment toward AI-driven smart glasses and wearables while reducing emphasis on virtual reality projects. Reality Labs incurred more than $19 billion in losses in 2025; Meta cut over 1,000 Reality Labs roles, closed three VR studios, retired a VR meetings app, and paused third-party Horizon OS headset plans. The company reported that smart glasses sales more than tripled in 2025 and plans AR/AI glasses that can see, hear, converse, assist daily tasks, and display custom UI. Meta expects Reality Labs losses to peak at recent levels and gradually decline as investments shift and VR seeks profitability.
Read at Engadget
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