The operating loss for Meta’s metaverse division, Reality Labs, amounted to $4.67 billion for the period from October to December 2023.
This figure marks a record since the business unit’s inception in the fourth quarter of 2020.
Revenue for the latest reporting period rose to $1.07 billion. For comparison, it was $210 million in the third quarter and $727 million in the fourth quarter of 2022.
Overall, for 2023, the division reported:
- a net loss of $16.1 billion (compared to $13.7 billion the previous year);
- an operating loss of $16.1 billion (up 17.5% year-on-year);
- revenue of $1.9 billion (compared to $2.16 billion in 2022).
During a conference with analysts, the company’s CFO Susan Li expressed expectations of a “significant year-over-year increase” in Reality Labs’ losses. She attributed this to the development of AR and VR products and “investments in further scaling the ecosystem.”
Meta’s founder and CEO, Mark Zuckerberg, linked the revenue growth to a “strong holiday season” and a “good start” for the Quest 3 VR headset, launched on October 10. According to him, on Christmas Day, the device’s related app became the most downloaded in the app store.
The top executive pledged to continue significant investments in AI and metaverse gaming, which are “core components of the corporation’s long-term vision.”
“I still expect that the next generation of AR, VR, and mixed reality computing platforms will provide a realistic sense of presence, which will be the foundation for future social experiences,” explained Zuckerberg.
The company plans to launch multimodal artificial intelligence features in 2024. Meta’s CEO stated that consumers will desire new categories of devices that use AI today, without relying on a phone.
In January, ForkLog reported on Meta’s plans to acquire 350,000 H100 graphics processors from Nvidia to advance artificial intelligence.
In September 2023, the corporation introduced a set of AI tools, including a voice assistant, a neural network with various personalities, “smart glasses,” and a sticker generator.