Meta Shifts Metaverse Funds To AI Wearables And Glasses Amid Investor Support And Rising Capex

Benzinga

Meta is reallocating metaverse funding toward AI glasses and wearables after years of massive Reality Labs losses, boosting investor confidence and lifting the stock. The company is doubling down on AI talent, hardware, and infrastructure while trimming parts of its AI division to streamline work.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Meta plans to cut Metaverse spending and shift those funds to AI glasses and wearables as part

00:08of its 2026 budget planning, according to the Wall Street Journal. The move departs from

00:13Zuckerberg's 2021 Metaverse vision and follows more than $77 billion in Reality Lab's operating

00:19losses since 2020. Investors welcome the shift, sending shares up more than 3%.

00:25Meta has prioritized AI throughout the year, forming a super intelligence division,

00:30offering $100 million pay packages to specialists and focusing on Ray-Ban AI glasses, which have

00:37sold more than 2 million pairs. The company cut about 600 jobs in its AI division in October

00:42to streamline operations and warned of rising capital expenditures to compete in AI.

00:46For all things money, visit Benzinga.com.

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