Mark Zuckerberg has a message for all his metaverse critics: he doesn’t care what you think. Not only is he not cutting back on investments in augmented and virtual reality to account for the economic slump, but he plans to spend even more money! In its third-quarter earnings reports on Wednesday, Facebook owner Meta Platforms, which is posting a staggering 4% drop in revenue, revealed that losses from the Reality Labs division developing AR and VR gear for the metaverse futuristic jumped 31% from the second quarter.
This brings the annualized metaverse investment to nearly $15 billion, well above the $10 billion annual figure the company previously gave. Moreover, losses will “increase significantly” next year, Meta said. And that’s just part of a continued increase in capital spending at Meta. Executives expect overall operating expenses to increase next year by about 14%. Capital expenditure will also increase. This is partly due to investments in the metaverse, but also to spending on artificial intelligence, which powers all sorts of services, including the company’s TikTok rival, Reels, as well as spending on advertising and commercial messaging technology. . Meta-leaders say they’re becoming more careful about their spending, but that doesn’t really show in the numbers.