Mark Zuckerberg says Actuality Labs will (ultimately) cease dropping a lot cash

Mark Zuckerberg says there’s an finish in sight to Actuality Labs’ years of multibillion-dollar losses following the corporate’s layoffs to the metaverse division earlier this yr. The CEO mentioned he expects to “progressively cut back” how a lot cash the corporate is dropping because it doubles down on AI glasses and shifts away from digital actuality.

Talking throughout Meta’s fourth-quarter earnings name, Zuckerberg was clear that the adjustments will not occur quickly, however sounded optimistic concerning the division that misplaced greater than $19 billion in 2025 alone. “For Actuality Labs, we’re directing most of our funding in the direction of glasses and wearables going ahead, whereas specializing in making Horizon an enormous success on cell and making VR a worthwhile ecosystem over the approaching years,” he mentioned. “I anticipate Actuality Labs losses this yr to be much like final yr, and it will seemingly be the height, as we begin to progressively cut back our losses going ahead.”

The corporate minimize greater than 1,000 employees from Actuality Labs earlier this month, shut down three VR studios and introduced plans to retire its app for VR conferences. Meta has additionally paused plans for third-party Horizon OS headsets. As a substitute, Meta is doubling down on its good glasses and and wearables enterprise, which tie in additional neatly to Zuckerberg’s imaginative and prescient for creating AI “superintelligence.”

In the course of the name, Zuckerberg famous that gross sales of Meta’s good glasses “greater than tripled” in 2025, and hinted at larger plans for AR glasses. “They [AI glasses] are going to have the ability to see what you see, hear what you hear, discuss to you and provide help to as you go about your day and even present you info or generate customized UI proper there in your imaginative and prescient,” he mentioned.

Zuckerberg has spent the previous few years laying the groundwork for pivoting Meta’s metaverse work into AI. He provided one instance if what the means for Meta’s Horizon app.

“You’ll be able to think about … folks with the ability to simply, via a immediate, create a world or create a recreation, and have the ability to share that with individuals who they care about. And also you see it in your feed, and you’ll bounce proper into it, and you’ll interact in it. And there are 3D variations of that, and there are 2D variations of that. And Horizon, I believe suits very effectively with the sort of immersive 3D model of that.

“However there’s positively a model of the long run the place, you already know, any video that you just see, you may, like, faucet on and bounce into it and, like, interact and sort of like, expertise it in a extra significant manner. And I believe that the investments that we have accomplished in each a number of the digital actuality software program and Horizon … are literally going to pair effectively with these AI advances to have the ability to convey a few of these experiences to a whole lot of tens of millions and billions of individuals via cell.”

One factor Zuckerberg didn’t point out, although: the phrase “metaverse.”