Meta is scaling back its metaverse spending and redirecting resources toward AI-powered glasses and wearable devices, marking one of the company’s most significant strategic pivots in years. Key Takeaways: Meta is cutting metaverse spending as it shifts focus to AI-powered wearables. VR platforms like Horizon Worlds have stalled, while smart glasses are gaining traction. The pivot aligns with a broader industry move toward lightweight, AI-integrated devices. The shift comes as investor skepticism grows over the long-term commercial viability of virtual worlds and VR headsets, the BBC reported on Friday , citing a company spokesperson. Meta’s Metaverse Bet Falters as User Growth Stalls The company has spent more than a decade pouring billions into the metaverse, an initiative that was central to CEO Mark Zuckerberg’s vision for the future of computing. That ambition also led Facebook to rebrand as Meta in 2021, signaling a company-wide commitment to building immersive digital spaces. However, momentum has stalled. Meta’s flagship VR platform, Horizon Worlds, has struggled to retain users, while sales of the company’s headsets have failed to justify the scale of investment. Bloomberg reported Thursday that Meta plans to cut metaverse spending by up to 30%, sending shares up more than 3% as markets reacted positively to a potential recalibration. A spokesperson said the company is not planning “broader changes,” declining to comment on whether the shift could include layoffs across metaverse-focused teams. Mark Zuckerberg and Meta Platforms $META are reportedly expected to meaningfully cut resources for building the metaverse Executives have reportedly discussed potential budget cuts as high as 30% for the metaverse group next year – Bloomberg pic.twitter.com/PAuEYuMnhN — Evan (@StockMKTNewz) December 4, 2025 Instead, Meta sees a faster path forward in wearable AI devices, particularly its new line of smart glasses, launched in September to stronger-than-expected demand. The latest models feature an on-lens display capable of describing real-world surroundings, identifying objects, and translating text. Analysts view the glasses as one of the first products to successfully blend AI assistance with hardware in a consumer-friendly form, a direction Meta now hopes to accelerate. The move reflects wider industry trends. Companies across the US and China are racing to bring AI-enabled glasses and compact wearables to market, betting that users will gravitate toward lightweight, always-on assistance rather than immersive VR environments. Meta Shareholders Reject Call to Add Bitcoin to Company Treasury In June, Meta investors overwhelmingly shot down a proposal urging the company to explore adding Bitcoin to its balance sheet, according to a May 28 filing. The measure received just 3.92 million votes in favor, roughly 0.08% of all shares, while nearly 5 billion voted against it. With CEO Mark Zuckerberg controlling 61% of voting power, the outcome was effectively predetermined. The proposal came from Bitcoin advocate Ethan Peck, who argued Meta should allocate part of its $72 billion cash pile into BTC as a hedge against inflation and diminishing real returns on cash and bonds. Peck cited BlackRock’s guidance supporting a small Bitcoin allocation and submitted the proposal on behalf of his family’s Meta holdings. He serves as Bitcoin director at Strive and has pushed similar campaigns at other tech giants. The post Meta Cuts Metaverse Spend as It Bets on AI Glasses and Wearables appeared first on Cryptonews .
