Meta's metaverse experiment has become one of the most costly failures in corporate history, with Reality Labs accumulating more than $70 billion (£52 billion) in losses since the start of 2021. Now, as Mark Zuckerberg shifts his focus aggressively towards artificial intelligence, retail investors face an uncomfortable question: are they about to watch history repeat itself?
The Facebook parent company is reportedly considering reducing its metaverse budget by up to 30% in 2026, with potential layoffs as early as January. Yet in the same breath, Meta's chief financial officer has warned that capital expenditure growth will be 'notably larger' next year as the company races to develop AI infrastructure.
