Mark Zuckerberg Vows to End Reality Labs' Financial Bleeding by Gradually Reducing Losses
In a surprise move, Meta CEO Mark Zuckerberg has acknowledged that his company's Reality Labs division is on the path to profitability. Speaking during the company's fourth-quarter earnings call, Zuckerberg announced plans to "gradually reduce" the division's massive losses.
The Reality Labs division, which includes Meta's virtual reality (VR) and augmented reality (AR) efforts, has been hemorrhaging cash at an alarming rate. In 2025 alone, the division lost over $19 billion, a staggering amount that eclipses many countries' annual GDPs.
However, Zuckerberg is optimistic about the division's prospects for success. The CEO cited significant advancements in AI technology as key to Reality Labs' turnaround. He noted that sales of Meta's smart glasses have more than tripled in 2025 and hinted at even bigger plans for AR glasses that can "see what you see, hear what you hear, talk to you" and generate custom UI.
The company is shifting its focus towards AI-powered glasses and wearables, a move that Zuckerberg sees as crucial to creating an "AI superintelligence." By concentrating on this area, Reality Labs aims to create a more profitable ecosystem for virtual reality, with the ultimate goal of bringing immersive experiences to billions of people through mobile devices.
Zuckerberg's comments came after Meta made significant layoffs in the Reality Labs division earlier this year. The company also announced plans to retire its app for VR meetings and pause third-party Horizon OS headsets. Instead, Meta is doubling down on its smart glasses and wearables business, a move that aligns with Zuckerberg's vision for a future where AI and technology seamlessly integrate into daily life.
One notable omission from Zuckerberg's comments was the word "metaverse," which has become synonymous with Reality Labs' efforts in virtual reality. The CEO's decision to sidestep this term suggests a significant shift in focus towards AI-powered AR experiences that are less dependent on traditional VR technologies.
In a surprise move, Meta CEO Mark Zuckerberg has acknowledged that his company's Reality Labs division is on the path to profitability. Speaking during the company's fourth-quarter earnings call, Zuckerberg announced plans to "gradually reduce" the division's massive losses.
The Reality Labs division, which includes Meta's virtual reality (VR) and augmented reality (AR) efforts, has been hemorrhaging cash at an alarming rate. In 2025 alone, the division lost over $19 billion, a staggering amount that eclipses many countries' annual GDPs.
However, Zuckerberg is optimistic about the division's prospects for success. The CEO cited significant advancements in AI technology as key to Reality Labs' turnaround. He noted that sales of Meta's smart glasses have more than tripled in 2025 and hinted at even bigger plans for AR glasses that can "see what you see, hear what you hear, talk to you" and generate custom UI.
The company is shifting its focus towards AI-powered glasses and wearables, a move that Zuckerberg sees as crucial to creating an "AI superintelligence." By concentrating on this area, Reality Labs aims to create a more profitable ecosystem for virtual reality, with the ultimate goal of bringing immersive experiences to billions of people through mobile devices.
Zuckerberg's comments came after Meta made significant layoffs in the Reality Labs division earlier this year. The company also announced plans to retire its app for VR meetings and pause third-party Horizon OS headsets. Instead, Meta is doubling down on its smart glasses and wearables business, a move that aligns with Zuckerberg's vision for a future where AI and technology seamlessly integrate into daily life.
One notable omission from Zuckerberg's comments was the word "metaverse," which has become synonymous with Reality Labs' efforts in virtual reality. The CEO's decision to sidestep this term suggests a significant shift in focus towards AI-powered AR experiences that are less dependent on traditional VR technologies.
! I was like "when is this division gonna turn around?" lol, and now it's happening thanks to all that AI tech advancements 
! The smart glasses sales tripled in 2025? That's wild! And the idea of AR glasses that can "see" & "hear" what we do... mind blown 
! Zuckerberg's vision for an "AI superintelligence" is kinda creepy, but I guess it's cool to think about tech getting smarter 
. One thing tho, where are all those Metaverse vibes now? Guess Reality Labs is shifting towards AI-powered AR instead 
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. They've been so focused on the metaverse and VR for so long, it's refreshing to see them shift their attention to AR. I mean, who wouldn't want smart glasses that can literally see what you're seeing and hear what you're hearing? It sounds like they're onto something big 
. Of course, $19 billion in losses is still a lot to swallow 
, but if AI tech is the key, maybe they'll finally crack the code on making VR (or AR) profitable 
. And I gotta ask, what's up with the layoffs? Meta's always been about innovation, but sometimes it feels like they're just trying to innovate themselves out of trouble 
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! But seriously, it's about time they shifted their focus to AI-powered glasses and wearables - that's where the future is at 
One thing I'm wondering though, what happened to the metaverse? Did Meta just decide to leave that behind or is it still part of the plan? 
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I mean, $19 billion in losses is crazy, but if they're talking about cutting it down to nothing and making a gazillion from AI glasses, I'm here for it 
. Plus, I love the idea of "seeing what you see" and hearing what you hear... that sounds like some trippy stuff 
! I'm curious to see how this all plays out – fingers crossed Meta can make it happen 
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I think it's cool that they're working on AI-powered glasses and wearables, but let's not forget about the metaverse 
. But I'm a bit concerned about how this whole thing will play out. Mark Zuckerberg seems pretty optimistic, but can he really deliver on his promises? And what's going on with the metaverse thingy? Are we gonna forget all about VR? It's like they're playing catch-up or something. Still, I gotta respect their willingness to take risks and try new things 
and zuckerberg being optimistic about reality labs is good news 
but like, what's the deal with no metaverse mention tho? 
i mean it's still a big part of their plans... 
I mean, who wouldn't want to see what others are seeing, hear what they're hearing, or just plain old have a super intelligent assistant at their wrist? 
It's like something out of a sci-fi movie! And let's be real, the smart glasses sales tripling in 2025 is pretty crazy too... I wonder if we'll be walking around with our own little AI butlers soon 
i feel like we might actually see some crazy tech in the future like smart glasses that can do everythin' u do rn 
. People losing their jobs just because the company is trying to pivot its focus? That's not a sign of success, that's a sign of desperation 
I know Zuckerberg didn't say anything bad, but still, it feels like a major pivot. Maybe he's just trying to shift the focus away from VR and towards more wearable, user-friendly experiences? Either way, I'm here for it!