Meta sinks more than $100bn into virtual reality and smart glasses bet
- Meta Dials Up Investment in AR, VR Ahead of Smart Glasses 'Defining Year'
- Meta has redoubled its efforts in the realm of augmented and virtual reality (AR/VR), with CEO Mark Zuckerberg setting 2025 as the year that could transform the company's...
- The Reality Labs division, Meta's AR/VR hub, drove $2.1 billion in revenue last year, a 13% increase from 2023, but operating losses hit an all-time high of $17.7...
Meta Dials Up Investment in AR, VR Ahead of Smart Glasses ‘Defining Year’
Meta has redoubled its efforts in the realm of augmented and virtual reality (AR/VR), with CEO Mark Zuckerberg setting 2025 as the year that could transform the company’s smart glasses aspirations. The tech giant’s total investment in AR/VR is on track to surpass $100 billion this year, following a record $19.9 billion spend in 2024 alone.
The Reality Labs division, Meta’s AR/VR hub, drove $2.1 billion in revenue last year, a 13% increase from 2023, but operating losses hit an all-time high of $17.7 billion. Zuckerberg is now betting big on AR glasses, partnering with EssilorLuxottica to bring AI-powered smart glasses to the market. The latest generation, slated for 2025, will debut a small display—a first for the company’s wearable tech.
While sales of the Ray-Ban Meta smart glasses have reached 1 million units, Meta’s Quest VR headsets have proven slower to gain traction. Despite challenges in gaining mainstream appeal, Zuckerberg remains optimistic, stating that the number of users for Quest devices and the Horizon operating system is growing steadily.
Tech investor Matthew Ball sees Meta’s vast investment in Reality Labs, estimated at over $80 billion since 2014, as on par with competitors’ forays into new territories. "A lot of attention is paid to Zuckerberg’s bet on Reality Labs, but that is partly because they choose to discretely report it," Ball said. "All of their competitors have investments that are comparable that they don’t surface."
Despite the steep costs, Meta’s core advertising business remains robust. Net income surged by 60% in 2024 to $62.4 billion, demonstrating that while the company boldly looks to the future, it continues to deliver solid profits in the present.
As Zuckerberg anticipates a "defining year" for smart glasses, Meta’s AR/VR future hinges on this proving to be more than just an expensive gamble, transforming the company’s fortunes in the process.