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 stated he expects to “regularly scale 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 a large success on cell and making VR a worthwhile ecosystem over the approaching years,” he stated. “I count on Actuality Labs losses this yr to be much like final yr, and this can possible be the height, as we begin to regularly scale back our losses going ahead.”

The corporate lower 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 an alternative, 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.”

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

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

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

“However there’s undoubtedly a model of the longer term the place, you understand, any video that you just see, you may, like, faucet on and leap into it and, like, have interaction and sort of like, expertise it in a extra significant method. And I believe that the investments that we have completed in each loads of the digital actuality software program and Horizon … are literally going to pair nicely with these AI advances to have the ability to carry a few of these experiences to a whole bunch of hundreds of thousands and billions of individuals by way of cell.”

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