Latent Space AI Meta's AI Latent Space
Jan 20, 2026
Dive into the intriguing shift as Meta abandons its costly Metaverse project in favor of AI innovation. Discover the staggering $73 billion investment that fell flat and the reasons behind the lackluster interest in VR. The conversation highlights how poor design and hefty platform fees drove creators away. In a surprising twist, Meta's Ray-Ban smart glasses emerge as a beacon of success, showcasing the potential of AI wearables. This transition signals a new era for Meta, with AI at the forefront of their strategic vision.
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Colossal Metaverse Investment Fell Short
- Meta invested roughly $73 billion into the Reality Labs metaverse effort that failed to reach mainstream adoption.
- The scale of that bet reshaped the company's identity but produced poor product-market fit and weak user engagement.
Host's Personal VR Headset Experience
- Jaeden Schafer describes buying a Meta VR headset, enjoying it briefly over a holiday, then leaving it unused for years.
- This personal example illustrates VR's novelty appeal but weak long-term consumer retention.
Layoffs And Studio Shutdowns
- Jaeden lists several VR studios and apps being shuttered or cut, including Supernatural and various game studios.
- These closures and layoffs signal Reality Labs' retrenchment and diminishing product investment.