AI Chat: ChatGPT, AI News, Artificial Intelligence, OpenAI, Machine Learning Meta Abandons Metaverse for AI
Jan 20, 2026
Meta has made a dramatic pivot, abandoning its costly Metaverse project in favor of a renewed focus on AI, particularly inspired by the success of Ray-Ban smart glasses. The shift comes after a staggering $73 billion investment and significant layoffs, as the VR platform failed to capture consumer interest. Discussion highlights include the shortcomings of virtual reality experiences, unrealistic growth expectations, and the challenges of developer economics. Overall, it’s a fascinating look at how corporate strategy adapts in the face of market realities.
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Colossal Investment, Tiny Adoption
- Meta spent roughly $73 billion on the Metaverse and saw minimal consumer adoption for the core VR vision.
- The scale of investment versus low engagement makes the Metaverse experiment appear economically unsustainable.
Holiday VR Headset Test
- Jaden bought a Meta VR headset, enjoyed it briefly over a holiday, then left it unused for years.
- He describes that initial novelty gave way to headaches and disuse, mirroring many consumers' experiences.
Studio Closures And Layoffs
- Meta shut down or cut many VR studios and paused licensing efforts, leading to ~1,500 layoffs in Reality Labs.
- Titles like Resident Evil 4 VR and Supernatural were affected, with some content placed into maintenance mode.