No? The huge investment Facebook made in launching a virtual reality social media platform that Mark Zuckerberg predicted would take over the internet? It was so important that Zuck renamed his whole company to Meta! How could you forget?
Well, now it’s safe to purge your memory banks. The Metaverse is dead or dying.
Horizon Worlds launched in late 2021 and never found its footing. The platform never drew more than a few hundred thousand monthly active users, which isn’t enough for a project that consumed billions of dollars. Reality Labs, the Meta division responsible for VR and metaverse development, has accumulated nearly $80 billion in losses since 2020. In the fourth quarter alone it posted an operating loss of more than $6 billion.
The costs were always the argument for staying the course. Zuckerberg had promised the metaverse would reach a billion people and generate hundreds of billions in commerce. Pulling back meant admitting those projections were wrong.
I am impressed that Zuckerberg can throw away $80 billion on a bad gamble on a whim. Surely this means the stockholders will rise up and depose their incompetent leader…nah, no, you know that once you’re rich enough you are free from consequences.
You might hope that they’d learn something from this, but no — their future is instead going to be built on AI.
What changed the calculus was AI. When ChatGPT arrived in late 2022, Meta pivoted its public messaging fast. Its AI research division, long led by scientist Yann LeCun, gave the company a credible foundation to build on. Ad revenue improved. The stock recovered. By 2024, Meta had nearly tripled in value from its 2022 lows.
AI seems to have a niche in building stock market confidence and ad revenue, that’s nice. I think it’s going to face some consequences in the near future, as people realize they’ve been sold a shiny bill of goods, and maybe people will learn to tell Zuck to shut the fuck up.












