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It was not too long ago when Meta appeared to put all its eggs in the metaverse. The company vowed to build the future version of the internet and began heavily investing in it.

A little over a year since then, Meta’s priorities appear to have shifted. Now, the company looks to be focusing on Artificial Intelligence (AI).

REUTERS/Charles Platiau

CNN reported the development on Wednesday, quoting Meta CEO Mark Zuckerberg as saying: “Our single largest investment is in advancing AI and building it into every one of our products.”

This pivot in priorities appears surprising on one end and expected on the other. It is unsurprising given Meta’s well-documented struggles with the metaverse. It is to be expected at the same time considering the ongoing AI frenzy (witness the rise of ChatGPT-4). Besides, Meta (then Facebook) has been involved in AI-related research anyway and appears well-equipped to take it up a notch.

Unfortunately, Meta’s renewed emphasis on advancing AI comes on the heels of massive layoffs. Zuckerberg has reportedly informed the Meta staff of the impending downsizing, to be done in tranches in the coming months. The plan, according to reports, is that Meta will cut down on staff to save up on costs. Those costs skyrocketed last year as Meta invested heavily in areas with unproven potential like the metaverse. Meta lost more than USD $13.7 billion in investing in the metaverse, and that likely explains the shift in priorities.

That does not mean Meta is completely abandoning the metaverse, though, as it will continue to invest in it. Zuckerberg even emphasised that the metaverse “remains central to defining the future of social connection.” But he also clarified that Meta will no longer be putting most of its capital into it.

Most of Meta’s resources will go to AI instead, with the ultimate goal of increasing efficiency within the company.

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