Meta's Reality Labs Reports Record $5 Billion Q4 Loss as Metaverse Costs Mount
Meta's Reality Labs division reported a $4.97 billion operating loss in Q4 2024, while generating $1.1 billion in revenue. Though substantial, these losses were lower than analyst projections of $5.4 billion.
Man wearing Meta Quest VR headset
Reality Labs, responsible for Meta Quest headsets and Ray-Ban Smart Glasses, has consistently posted quarterly losses exceeding $2 billion since Q4 2020. The division's cumulative losses have now surpassed $60 billion since reporting began.
Meta's VR journey started in 2014 with the $2 billion acquisition of Oculus. CEO Mark Zuckerberg views AR and VR as crucial components of future computing platforms, despite similar digital worlds like Second Life failing to achieve mass adoption over the past two decades.
Meta Reality Labs Losses Graph
Looking ahead, Meta plans to invest $60-65 billion in AI computing infrastructure throughout 2025, considering AI essential to their metaverse strategy. The company is reportedly developing both a Meta Quest 4, scheduled for 2026, and a high-end headset to compete with Apple Vision Pro.
Despite mounting losses, Meta remains committed to its metaverse vision, with Zuckerberg positioning the company for what he believes will be the next major computing platform.
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