Meta Shifts Focus: Major Metaverse Budget Cuts Signal AI Pivot

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In a significant strategic reversal, Meta Platforms Inc. is dramatically scaling back its investment in the metaverse. The company is redirecting approximately 30% of its budget for this initiative toward artificial intelligence and its highly profitable core advertising operations. This move by CEO Mark Zuckerberg represents a decisive pullback from what has been a costly, multi-year experiment.

The rationale for this strategic shift becomes clear when examining the performance of Meta’s foundational businesses. The Family of Apps segment—encompassing Facebook, Instagram, WhatsApp, and Messenger—remains a financial powerhouse. For the first nine months of 2025, this division generated $139.8 billion in revenue, delivering an operating profit of $71.7 billion.