Meta: Reality Labs Loses $4.48 Billion in Q2, Focuses on AI Infrastructure

Bittime - Meta Platforms (META.O) just announced financial results for the second quarter of 2024, with results that exceeded market expectations. Revenue for the quarter exceeded initial predictions, and projections for the third quarter are also optimistic. Meta estimates revenue for the third quarter will be between $38.5 billion and $41 billion, higher than analysts' estimate of $39.1 billion. Despite an increase in operational costs of 7%, faster revenue growth managed to increase operating profit margin from 29% to 38%.

Significant Losses in the Reality Labs Division

Despite the positive results, Reality Labs' metaverse division reported a massive loss of $4.48 billion in the second quarter. Revenue from this division accounts for less than 1% of Meta's total revenue. The losses are a continuation of a worrying trend, with losses of $6 billion in 2020 and $16 billion in 2023. In June, the company laid off about 100 employees, including several vice presidents and managers, as part of a restructuring effort.

Internal Issues and Development Challenges

Former Reality Labs employees revealed several significant problems facing the division. They noted a lack of clear vision, frequent reorganization, and a lack of expertise in augmented reality (AR) and virtual reality (VR) at the leadership level. Currently, Meta is developing AR glasses codenamed "Orion," but there are doubts regarding the product's commercial viability in the market. Meta CEO Mark Zuckerberg acknowledged that while AR hologram technology may take longer to develop, the company remains ready for it.

Meta's Future Focus on AI Infrastructure

Despite the losses faced by Reality Labs, Meta plans to continue investing substantially in artificial intelligence (AI) infrastructure. The company estimates capital spending on AI infrastructure will reach between $37 billion to $40 billion by 2024. eMarketer analyst Max Willens thinks the quarterly results could help assuage investor concerns regarding Meta's heavy spending in AI and metaverse technology.

Meta's Commitment to Future Digital Technologies

With a continued focus on AI investments and efforts to address challenges in the metaverse division, Meta is demonstrating its commitment to strengthening digital infrastructure for the future. While the company struggles to strike a balance between its metaverse ambitions and AI development, these moves demonstrate its intent to remain a leader in the ever-evolving technology sector.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.