Jakarta, domclub Indonesia
—
Ambitious project
Mark Zuckerberg
, Metaverse, apparently did not run well, and even tended to make the company,
Meta
, loss.What’s his fate?
Overall, the company reportedly lost more than US$70 billion or around Rp. 1,166 trillion since the beginning of 2021 due to long-term betting on its virtual world ambitions.
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The Metaverse project falls under Reality Labs, the division that developed the Quest mixed-reality headset, EssilorLuxottica’s Ray-Ban collaboration smart glasses, as well as upcoming augmented-reality glasses.
It is said that Meta is still having difficulty selling its vision of an interconnected, immersive metaverse world, as well as expanding the market for its devices outside the gaming community, which is still its main market.
On that basis, company executives are considering cutting the budget by up to 30 percent for this project.
According to reports
Bloomberg
via
Reuters
, the proposed Metaverse budget cuts are part of the company’s annual budget planning for 2026.
According to the report, budget cuts of this magnitude will likely include layoffs starting in January.Meta did not immediately respond to a request for comment
Reuters
.
Chaig Huber, an analyst at Huber Research Partners, said that this budget cut was a smart step but too late.
“This appears to be a major shift to aligning costs with revenue projections that are clearly not as optimistic as management thought a few years ago,” Huber said, citing
Reuters
, Thursday (4/12).
The report was released at a time when Meta is trying to maintain its competitive edge in the artificial intelligence (AI) race in Silicon Valley, after its Llama 4 model received a lukewarm reception.
To achieve its ambitious goals, Meta has allocated up to US$72 billion (around Rp. 1,201 trillion) for capital expenditure this year.Overall, large technology companies are expected to spend around US$400 (Rp. 6,668 trillion) billion on AI this year.
Earlier this year, the company restructured its artificial intelligence (AI) efforts under Superintelligence Labs, with CEO Mark Zuckerberg directly leading an aggressive talent recruiting strategy, which involved pitching to startups and directly courting potential employees via WhatsApp with multimillion-dollar pay packages.
(wpj/dmi)
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