Mark Zuckerberg has clarified his stance on the metaverse, despite a tough first quarter that saw the loss of $4 billion by the Reality Labs, the division behind its Oculus Quest and AR/VR projects. Despite media reports suggesting a shift, Zuckerberg maintained that the company is still committed to building the metaverse.
Meta is an American technology company involved in Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence and 3D Technology. Zuckerberg said that the company is investing in AI technology to help them develop the metaverse, and that they were committed to seeing the project through in the long-term.
Reality Labs, the division that manages Meta’s AR and VR units, reported a $4 billion loss in the first quarter. This was slightly lower than the $4.3 billion loss reported in the fourth quarter. The company said that it expected capital expenditures of as much as $33 billion for the year as developers look to invest in AI projects and improve the tech that powers the metaverse.
“We continue to expect Reality Labs operating losses to increase year-over-year in 2023,” Meta said in its earnings report. It added that it expected capital expenditures of between $30 billion and $33 billion for the year, in part because of increased investment in its generative AI initiatives as well as its focus on building AI capacity to support ads, Feed, and Reels.
To ease the financial strain of the losses, the company announced layoffs in November and March, reducing its global workforce by 21,000. Despite this, Zuckerberg made it clear that they were still just as committed to the metaverse and were launching a new consumer device in the near future.
Meta is an ambitious company looking to lead the way in AR and VR technology. Their stake in the metaverse is grand and their year-over-year expected losses on their Reality Labs division only serves to further push this point home. Ultimately, though, with Mark Zuckerberg personally ensuring Meta’s commitment to the metaverse, it is safe to say that the company is still in the race for the metaverse.
