Meta suffers another major loss in Reality Labs but increases AI investment

Staff Reporter

Social media giant Meta has released its latest quarterly financial report, showing another large loss in its Reality Labs division. This division focuses on AR glasses, VR headsets, and related software development.

According to the report, Reality Labs recorded a loss of nearly 4 billion dollars in the most recent quarter. Since 2021, the total loss from this division has exceeded 83 billion dollars, averaging around 4 billion dollars per quarter.

Despite these losses, Meta’s overall financial position remains strong. In the first quarter of this year, the company reported a net profit of 26.8 billion dollars, a significant increase compared to the previous year. During the same period, revenue also rose to 56.3 billion dollars.

Analysts say Meta is gradually shifting focus away from the metaverse project and increasing emphasis on artificial intelligence (AI). The company is expected to invest between 125 and 145 billion dollars in 2026, higher than earlier projections.

Meta CEO Mark Zuckerberg said in a meeting with investors that spending on infrastructure is increasing, especially due to the high cost of hardware components. He also stressed improving investment efficiency.

Meanwhile, Meta has recently hired a significant number of researchers and engineers in the AI sector and launched new AI models. However, experts say the cost of developing and maintaining such technologies is rising rapidly.

There is also some uncertainty regarding Meta’s long-term investment plans. The company’s finance chief said that computing demand is still evolving, making it difficult to provide precise long-term cost forecasts.

After the report was released, investor concerns increased, and Meta’s share price fell by more than 5 percent in subsequent trading.

Analysts say Meta will need even larger investments to stay competitive in AI, but it is still unclear whether these investments will be profitable in the long term.