Meta Pushes Muse and AI Glasses as $80 Billion Metaverse Losses Haunt Its Next Bet
Updated
Updated · The Verge · Sep 22
Meta Pushes Muse and AI Glasses as $80 Billion Metaverse Losses Haunt Its Next Bet
2 articles · Updated · The Verge · Sep 22
Summary
Meta is tying its next reinvention to AI agents and smart glasses, with its new Muse app already topping the iOS charts and reaching more than 600,000 daily US users.
That push follows a costly pivot away from the metaverse: Reality Labs has racked up more than $80 billion in operating losses, while Meta cut about 10% of the division and shut or scaled back several VR efforts this year.
Smart glasses are the brighter spot. Meta sold roughly 2 million Ray-Ban Meta glasses, partner EssilorLuxottica sold another 7 million by end-2025, and IDC says Meta held 69.2% of the smart-glasses and headset market in Q2 2026.
The expansion still faces backlash over privacy and misuse, including criticism of facial-recognition plans and 'super sensing' glasses, even as Meta tightens recording-light rules and removes prank videos.
Behind the product push, Meta is spending heavily to catch up in AI after offering packages of up to $1 billion for talent, while employees describe strategy drift, weak morale and uncertainty over whether AI will become another metaverse-style detour.