Meta · TechCrunch AI
When Meta published its quarterly earnings report on Wednesday evening
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Meta losing $4 billion on Reality Labs didn’t seem surprising.
Key facts
- When Meta released its quarterly earnings report on Wednesday evening, a colleague pointed out how Meta lost $4 billion on Reality Labs, the division responsible for its AR glasses, VR headsets
- Meta losing $4 billion on Reality Labs didn’t seem surprising
- While CEO Mark Zuckerberg reported “large increases” in Meta AI use since that release, it’s only getting more expensive to build and maintain AI products
- The team aren’t providing a specific outlook for 2027 capex, and they are, frankly, undergoing a dynamic planning process ourselves as they're working through what their capacity needs will be over the coming
Summary
When Meta released its quarterly earnings report on Wednesday evening, a colleague pointed out how Meta lost $4 billion on Reality Labs, the division responsible for its AR glasses, VR headsets, and VR software. Then the reporter realized, that itself is notable — for Meta, losses on this unit are average behavior. Equally astounding is that as Meta pulls back from its metaverse ambitions, its spending on AI will be even more astronomical. True, it’s not like Meta doesn’t have the money. But despite its foundation in social media, Meta’s current goal is to stay competitive with AI leaders like OpenAI and Anthropic.