Meta has a plan to turn 2 highly unprofitable divisions into massive cash cows

Meta CEO Mark Zuckerberg says its AI assistant Muse has "very high compute costs" while its hardware division remains highly unprofitable.

Meta has a plan to turn 2 highly unprofitable divisions into massive cash cows

TL;DR

  • Meta expects its AI assistant, Muse, to become highly profitable over multiple years due to anticipated improvements in compute efficiency.
  • Plans are in place to monetize Muse by taking a small transaction fee off of purchases it drives.
  • The Reality Labs division's losses are projected to decrease to approximately $15 billion in 2027, with a move towards profitability expected next year.
  • Zuckerberg views VR as the initial step towards achieving holographic experiences and integrating the physical and digital realms.