An ambitious move within Meta to build its own custom chips for use in an expanding line of wearable consumer devices fell victim to ongoing efforts to rein in company costs.
Back in 2023, while Meta was still deep into cofounder and CEO Mark Zuckerberg’s “year of efficiency,” years of work on the in-house development of computer chips crucial to a planned line of wearable glasses effectively came to an end. Amid mass layoffs and cost-cutting efforts throughout the company, work on custom chips was deemed too expensive, and the need for the chips too far removed from current business priorities, two people familiar with the company and the changes told Fortune.
