Meta Redirects Part of Metaverse Budget Toward AI-Powered Smart Glasses
Meta is scaling back a portion of its metaverse spending to increase investment in artificial intelligence glasses and wearables, the company has confirmed.
The move comes as the tech giant faces ongoing pressure to justify the billions it has poured into virtual-reality development, a long-term bet that has yet to win over many investors. Reports from Bloomberg suggest the company may trim metaverse funding by up to 30%, a shift that helped lift Meta’s share price by more than 3% after the news surfaced.
A Meta spokesperson said the adjustment reflects growing momentum in AI-driven hardware, particularly smart glasses, but added that no wider restructuring is planned. The company declined to say whether the shift would lead to job cuts.
Meta is positioning its latest AI-enabled glasses – released in September – to anchor its renewed push into wearables. The newest models include a built-in display capable of identifying objects and translating written text, features that analysts say give the device broader everyday utility while keeping the design lightweight.
Competition in the smart eyewear market has intensified, with Chinese manufacturers and other tech firms ramping up efforts in the same category.
The pivot highlights Meta’s ongoing struggle to persuade investors of the metaverse’s near-term potential. Despite heavy spending on VR headsets and its Horizon Worlds platform, uptake has been slower than expected. Meanwhile, interest in artificial intelligence – both in software and consumer hardware—has surged across the industry.
Alongside its hardware push, Meta has been accelerating development of large AI models and integrating the technology into its apps, including WhatsApp.
