Meta shifts focus to AI smart glasses as metaverse plans falter

Meta trims its metaverse bets and pivots toward AI-powered glasses and wearables, hoping to turn a risky, long-term vision into practical momentum and real-world usefulness.

Meta is shifting part of its investment away from the metaverse toward AI-enabled wearables, especially smart glasses, to ride current momentum in that area.

In recent years, Meta has spent billions building the metaverse—a connected, immersive virtual space—yet investors remain wary about its long-term viability.

Bloomberg reported that Meta could cut metaverse funding by up to 30%. Shares rose on the news. The strategic shift explains why Facebook rebranded to Meta in 2021 to signal a broader tech ambition.

Expert view: Market analysts say the pivot to AI wearables mirrors a broader shift toward practical AI that users can buy now. They add that this could help Meta diversify revenue while its metaverse ambitions continue to evolve.

Strategic shift amid mixed vibes for the metaverse

Meta has begun redirecting funds from its long-running metaverse project to AI-based wearables, focusing on glasses capable of running AI features. This shift aims to capture early gains in a space investors see as more useful than a grand virtual realm.

Background: metaverse investment and Horizon Worlds

Over the past years, Meta poured billions into building a connected virtual space where people interact as avatars. Yet the concept has struggled to win broad demand and investor confidence. The move explains why Facebook underwent a renaming to Meta in 2021 as part of a broader tech strategy.

News outlet Bloomberg reported that the company could reduce metaverse funding by as much as 30%. After the news broke, Meta’s shares rose about 3-4%.

AI glasses as the new frontier

The latest smart glasses, launched in September, include a lens-mounted display that can describe what the wearer sees and translate text in real time. This design aims to offer a compact, practical AI experience that users can wear daily.

Other technology firms, including Chinese manufacturers, are racing to bring similar wearables to market, intensifying competition in this space.

What this means for Meta’s strategy

Meta’s emphasis has shifted from a grand metaverse vision to practical AI capabilities integrated into everyday devices. The company continues to invest in large AI models and in devices like smart glasses, while also expanding software features in apps such as WhatsApp.

The company remains committed to Horizon Worlds and other long-term projects, but the balance now favors quicker, revenue-friendly AI products.

Analysts note that the public market has shown stronger interest in AI-driven products than in immersive VR platforms, a reality that pushes Meta to adapt while refining its future metaverse strategy.