It was 2021 when Facebook made its biggest bet to date with the metaversea digital world where we would live connected to virtual reality glasses. Zuckerberg believed so much in the metaverse, that until He renamed his company Meta. However, the dream was short-lived. Millionaire losses, problems with technology and a clear lack of interest of the public made it evident that the bet had been a failurebut it seems that we all knew it except Meta, who continued determined to create that virtual world. Until now.
What has happened? Meta surrenders to the evidence and will begin to make significant cuts in its divisions dedicated to the metaverse starting in 2026. They tell it in Financial Times: The cuts could amount to up to 30% and will include both the budget of the Horizon Worlds and Quest VR divisions and presumably jobs.
Why is it important. The metaverse has been Meta’s obsession since 2021, but despite the efforts the proposal has not come to fruition. That they are considering reducing a third of their efforts is a way of admitting that the metaverse has failed. Since its creation, virtual and augmented reality department Reality Labs has lost a whopping $70 billion. There is also a key point and it is the current context with an exorbitant investment in AI: Meta has run out of excuses to continue spending in its virtual world.
Investors like this. Meta is in a delicate moment. After the last review of results, the company’s shares fell up to 11% despite having increased their income by 26%. How is it possible? Very simple: Zuckerberg announced that Capex for 2025 would not be $66 billion as they had anticipated, but from 70 to 72,000 million. Investors have many doubts about the company’s rampant spending. The news of budget cuts in the metaverse has also had an effect and shares are up 6%.
New obsession: AI. Meta has an obsession with artificial intelligence. Zuckerberg spent the entire summer signing the best AI talents for multimillion-dollar figures and is investing billions in the creation of data centers, especially the so-called Hyperion, which will be almost as big as Manhattan.
and the glasses. A few days ago Meta announced the creation of a new design studio within its Reality Labs department and for this has hired Alan Dye, one of Apple’s design chiefs. The goal is to work on the new interface of the company’s AI glasses, which have become its new reference hardware.
The Ray-Ban Meta They are working much better than their virtual reality glasses did. At the beginning of 2025, They had sold a million units and in July the division tripled his income. Speaking to the Financial Times, a company spokesperson said that “we are moving part of our investment from the metaverse to AI glasses and wearable devices, given the momentum they are experiencing.”
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