Despite revenues of $339 million, Meta's virtual and augmented reality division, Reality Labs, remains a drag on the tech company. However, Mark Zuckerberg is adamant that the metaverse will be profitable in the future through advertising and commerce.
Despite the March layoffs, the company continues to invest millions of dollars in research and development of the technology.
Long-term vision, but short-term losses for Reality Labs
While Meta's vision is forward-looking, the reality for Reality Labs is different. The division's operating losses are expected to continue to grow. Yet the company doesn't seem to want to change course. Indeed, Meta is banking on the long-term profitability of metavers and artificial intelligence, two technologies that could change the world of advertising and commerce.
Artificial intelligence, a promising alternative for Meta
If Reality Labs is making losses, artificial intelligence is a promising alternative for Meta. The company is investing in this technology to apply it to different activities, such as scientific research or object identification in augmented reality. Meta already has systems such as Segment Anything Model or Cicero, which could be used for entertainment purposes.
Despite the losses of Reality Labs, Meta is pursuing its long-term vision by investing in metaverse and artificial intelligence. These technologies could be game-changers in the world of advertising and commerce. In the short term, Reality Labs continues to weigh on the company's bottom line, but Meta believes in the division's future.
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