Meta, the parent company of Facebook, is significantly reducing its spending on the Metaverse, a virtual world that was once a key part of its strategy. Instead, the company is shifting its focus to AI-powered wearable devices, such as smart glasses. This move is seen as a major strategic shift for the company, and it reflects a broader industry trend towards the development of lightweight, AI-integrated devices.
Meta’s Metaverse Bet Falters
Meta has spent over a decade investing billions of dollars in the Metaverse, which was a key part of CEO Mark Zuckerberg’s vision for the future of computing. However, the company’s Metaverse platform, Horizon Worlds, has struggled to retain users, and sales of its headsets have failed to justify the level of investment. As a result, Meta is cutting its Metaverse spending by up to 30%, a move that has been seen as a positive step by investors, with the company’s shares rising by over 3%.
The decision to reduce spending on the Metaverse is not surprising, given the lack of traction the platform has gained. Despite being a key part of Meta’s strategy, the Metaverse has failed to deliver the expected returns, and the company is now looking to other areas for growth. The shift in focus towards AI-powered wearable devices is seen as a more promising area for the company, with the potential for faster growth and greater returns.
AI-Powered Wearable Devices
Meta’s new line of smart glasses, which was launched in September, has seen stronger-than-expected demand. The glasses have an on-lens display that can describe the real environment, identify objects, and translate text, making them a more practical and user-friendly device than the company’s Metaverse headsets. Analysts see the glasses as one of the first products to successfully combine AI support with hardware in a consumer-friendly form, and Meta is now looking to accelerate the development of this technology.
The move towards AI-powered wearable devices reflects a broader industry trend, with companies in the US and China vying to bring AI-enabled glasses and compact wearables to market. The idea is that users will rely on lightweight, always-on assistance rather than immersive VR environments, and Meta is now looking to be at the forefront of this trend.
Industry Trends
The shift towards AI-powered wearable devices is not unique to Meta, with other companies also investing heavily in this area. The trend is driven by the growing demand for more practical and user-friendly devices that can provide users with the information and assistance they need in their daily lives. As the technology continues to develop, we can expect to see more innovative products and services that combine AI support with hardware in a consumer-friendly form.
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