Meta Shifts Investment from Metaverse to AI, Plans Major Budget Cuts

Meta Platforms Inc. is preparing to significantly reduce spending on its metaverse division. The social media company is considering cutting the unit's budget by up to 30%, according to sources familiar with the plans. This strategic move signals a major shift in focus for CEO Mark Zuckerberg. Company resources are now being redirected toward artificial intelligence (AI) development. The metaverse division, known as Reality Labs, has reported billions of dollars in losses. The planned budget cuts indicate a scaling back of the company's ambitious virtual reality projects. Meta's new priority is to compete in the rapidly growing field of generative AI. This technology powers tools like advanced chatbots and image generators. The company has not released an official statement on the specific budget changes. The restructuring reflects the evolving priorities of the tech industry.