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Meta abandons VR dreams as AI becomes its new priority

Mark Zuckerberg's metaverse bet fizzled out—now Meta is betting everything on AI. What went wrong, and where does this leave VR?

The image shows a man wearing a VR headset standing in front of a computer in a war room. He is...
The image shows a man wearing a VR headset standing in front of a computer in a war room. He is wearing a blue t-shirt and is surrounded by two other people, one of whom is smiling. On the right side of the image, there is a glass door with text on it, and in the background there are lights and a pillar.

Meta, Facebook's Parent Company, Shuts Down VR World Horizon Worlds - Meta abandons VR dreams as AI becomes its new priority

Meta is scaling back its virtual reality ambitions after years of heavy investment. The company's Reality Labs division, responsible for Quest headsets and Horizon Worlds, has faced billions in quarterly losses. Now, a major shift towards artificial intelligence is underway.

In 2021, Meta founder Mark Zuckerberg rebranded Facebook as Meta, betting big on virtual reality as the future of computing. He positioned VR as the next major platform, pouring resources into Reality Labs and its flagship social space, Horizon Worlds. But the technology has not progressed as quickly as expected.

Horizon Worlds, launched in 2022, will shut down its VR version on June 15. After that date, it will only exist as a mobile app. Meta has not released user numbers or engagement data for the platform since its launch.

While the company insists it is not abandoning VR entirely, its focus is now shifting. Meta plans to invest hundreds of billions in expanding data centres to stay competitive in AI. Alongside this, it is developing AI-powered smart glasses with cameras, microphones, and speakers. These glasses will let users interact with Meta's AI assistant, signalling a new direction for the company.

The closure of Horizon Worlds in VR marks a clear pivot away from Meta's earlier vision. Billions spent on virtual reality have not delivered the expected returns, while AI now takes centre stage. The company's future investments will focus on data infrastructure and AI-driven hardware instead.

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