#Meta

Meta is shifting focus from virtual reality to AI and smart glasses due to VR’s slower-than-expected growth and significant losses. This pivot impacts VR developers and initiatives, though Meta states continued investment in VR. While consumer VR faces headwinds, the enterprise sector shows slow growth. AI-powered glasses are projected for substantial market expansion, contrasting with declining VR/MR headset shipments.

Meta is launching ads on Threads globally next week to generate revenue from its rapidly growing user base, which has surpassed 400 million monthly active users and is competing directly with X. This move aims to mirror the successful monetization strategies of Facebook and Instagram. Ads will be rolled out gradually, building on previous testing. Meta also plans to introduce new features to enhance the platform’s appeal and advertising capabilities.

Meta’s $2 billion acquisition of AI startup Manus faces customer distrust over data privacy concerns. Existing users are seeking alternatives, citing apprehension about Meta’s data handling practices and future integration into Meta’s AI roadmap. This skepticism poses a challenge for Meta as it competes with AI giants and aims to bolster its enterprise AI strategy, especially given its advertising-centric business model and mixed enterprise track record.

Meta’s Instagram Reels is capturing a significant ad share, exceeding half of all Instagram ads in 2025. This growth, driven by AI-powered engagement, is crucial for Meta’s revenue strategy, despite short-form video’s lower monetization efficiency. Reels’ increasing user time on both Instagram and Facebook underscores its importance in a competitive landscape dominated by vertical video.

Airbnb has appointed Ahmad Al-Dahle, formerly of Meta AI, as its new Chief Technology Officer. This strategic hire signals Airbnb’s commitment to innovation and expanding its services beyond short-term rentals. Al-Dahle’s extensive experience in generative AI and previous roles at Meta and Apple are expected to drive technological advancements and enhance user experiences on the platform. CEO Brian Chesky highlighted Al-Dahle’s ability to merge visionary thinking with technical depth.

Meta is reportedly scaling back VR efforts, cutting over 1,000 jobs in Reality Labs and closing several VR studios. Resources are being reallocated to accelerate AI development, a strategic pivot confirmed by the company. This shift prioritizes AI innovation, including AI-powered wearables like smart glasses, which have shown promising market demand. While not abandoning VR entirely, Meta aims to make its Horizon Worlds platform more accessible, potentially mirroring successes of platforms like Roblox. This comes after substantial VR investments and significant losses in Reality Labs.

Meta has appointed Dina Powell McCormick as President and Vice Chairman, bolstering its strategic leadership. With a background in global finance and international relations, including previous roles in the Trump administration and at Goldman Sachs, she will focus on shaping Meta’s growth. This appointment aligns with Meta’s ambitious AI infrastructure expansion, including the new “Meta Compute” initiative, aimed at scaling AI capabilities through significant data center investments and strategic partnerships.

Australia’s new social media ban for under-16s, effective December 11th, has led tech giants like Meta to remove hundreds of thousands of accounts. Meta supports industry collaboration for safety enhancements over broad bans, proposing solutions like Age Keys. Concerns remain about a “whack-a-mole” effect, with teens finding workarounds. The ban, framed by the government as protecting children’s mental health amidst growing global concerns, faces challenges, including a legal bid from Reddit.

Meta is partnering with nuclear power providers Vistra, TerraPower, and Oklo to secure significant energy for its AI ambitions, including the “Prometheus” supercluster. These collaborations aim to supply 6.6 gigawatts by 2035, supporting data centers and AI development. This move highlights the growing trend of tech giants relying on nuclear energy to power their expanding AI infrastructure and maintain global leadership in the field.

China is reviewing Meta’s $2 billion acquisition of AI startup Manus, focusing on potential violations of technology control regulations. The investigation by Beijing’s Ministry of Commerce aims to ensure compliance with export controls and overseas investment laws, signaling China’s determination to protect its strategic technological assets, especially in AI. The probe is unlikely to block the deal entirely but could impose conditions and give China leverage.