All articles tagged with #reality labs
Meta is reportedly reviving its long-discussed smartwatch project, internally named Malibu 2, with planned release this year and features centered on Meta AI and health tracking. The effort, previously paused in 2022 as Reality Labs tightened spending, follows Meta’s broader wearables push (including AR glasses and Ray-Bans) with no official launch date yet announced.
Meta Platforms beat fourth‑quarter expectations with $59.9 billion in revenue and $8.88 per‑share, driven by a 7% rise in daily active users to 3.58 billion and higher ad impressions. The company reiterated its AI‑driven strategy, detailing 2026 capex of $115–$135 billion to expand AI infrastructure, while Reality Labs losses are expected to stay near 2025 levels. For Q1, management guided revenue around $55 billion (about 30% year‑over‑year growth), signaling continued momentum under its AI‑centric approach.
Meta Platforms reported fourth-quarter 2025 revenue of $59.9B and full-year revenue of $201.0B, with Q4 net income of $22.8B and full-year net income of $60.5B. Revenue growth was driven by advertising across its Family of Apps, while Reality Labs remained loss-making. The company provided 2026 guidance—Q1 revenue of about $53.5-56.5B, total 2026 expenses of $162-169B, and capex of $115-135B—as it expands AI initiatives including Meta Superintelligence Labs, while noting regulatory headwinds in the EU and U.S. Meta also highlighted strong cash flow and a headcount near 78,865.
Meta is laying off about 1,500 Reality Labs employees (roughly 10% of the division) and shuttering three VR game studios as it pivots away from the metaverse toward AI wearables; Horizon Worlds remains but scaled back, while the company’s broader metaverse losses and ongoing AI glasses production questions frame the shift.
Meta is cutting over 1,000 workers in its Reality Labs division and shutting several game studios as it shifts investment away from metaverse projects toward AI-powered wearables like smart glasses; the company plans to reinvest the savings into wearables, a move set against broader tech layoffs and Reality Labs’ ongoing financial challenges.
Ben Thompson notes Zuckerberg’s unveiling of Meta Compute as a strategic bet that AI leadership hinges on owning the underlying infrastructure (data centers and tooling), prompting a retreat from Reality Labs to focus on scalable AI infrastructure and competing with OpenAI in the AI stack.
Meta is shutting down three VR studios—Twisted Pixel (Deadpool VR), Sanzaru Games (Asgard’s Wrath), and Armature Studio (Resident Evil 4 VR)—as part of a broader Reality Labs layoff and a shift in funding toward AI wearables, reflecting a move away from metaverse projects despite ongoing efforts in other VR titles.
Meta is cutting about 10% of its Reality Labs division, shuttering three VR studios—Twisted Pixel Games (Marvel’s Deadpool VR), Sanzaru Games (Asgard’s Wrath), and Armature Studio (Resident Evil 4 VR port)—and halting new content for the Supernatural app; Bloomberg reports and The Verge confirms the closures as part of shifting investment from the metaverse toward wearables, with staff layoffs and prior acquisitions noted.
Meta plans to lay off around 10% of its Reality Labs staff this week, with most cuts in the metaverse division, as the company pivots toward AI. CTO Andrew Bosworth has called an in-person meeting billed as the year’s most important, following earlier reports of metaverse budget cuts and a broader shift to AI.
Meta Platforms is cutting more than 1,000 jobs from its Reality Labs division to redirect resources from metaverse/VR toward AI wearables and smartphone features, with Horizon refocused on mobile, ongoing VR investments pared back, and several in-house VR studios slated to close.
Meta's CTO Andrew Bosworth is calling the most important all-hands meeting of the year for Reality Labs, urging in-person attendance amid ongoing financial losses and strategic shifts towards AI, following significant cuts and a focus away from the metaverse.
Google reports strong earnings, especially from GCP, justifying increased investment, while Meta faces criticism for lacking clear AI product applications, highlighting differing strategic focuses in the tech industry.
Meta teases the release of its first AR glasses, which will merge AR and VR capabilities, and are expected to be demoed at this year’s Meta Connect conference. The glasses are anticipated to offer AI upgrades, a sleek design, and the potential for new AR software development. While the release date is uncertain, Meta's AR glasses are generating excitement as a potential game-changer in the tech industry.
Meta Platforms' shares surged over 16% following strong earnings, a stock buyback increase of $50 billion, and the initiation of a quarterly dividend of $0.50 per share. The company reported better-than-expected fourth-quarter earnings, with revenue of $40.11 billion and adjusted EPS of $5.33. Despite losses in its Reality Labs division, Meta's advertising revenue exceeded expectations, and it anticipates strong revenue for the current quarter. The company also revealed plans to invest in generative AI and expects expenses of $94 billion-$99 billion in 2024.
Meta Platforms (META) reported fourth quarter earnings that surpassed analyst estimates, with adjusted EPS of $5.33 on revenue of $40.11 billion, and announced a $50 billion stock buyback and a $0.50 per share dividend. The company anticipates revenue of $34.6 billion-$37 billion for the current quarter. Despite a $4.65 billion loss in its Reality Labs division, Meta's shares soared by 17% in premarket trading. The company's long-term strategy involves developing general artificial intelligence and making it open source, with expenses expected to total $94 billion-$99 billion in 2024.