Meta lost $19.1B on VR last year as it reportedly plans $135B AI push

Meta burned $19.1 billion on its VR business last year, its latest earnings report (via TechCrunch) shows, even as the company is reportedly planning to invest $135 billion in AI this year that could include AI-generated games. Meta’s VR losses rose from $17.7 billion in 2024, while its Reality Labs division generated $2.2 billion in sales in 2025.

On an earnings call, Mark Zuckerberg said, "For Reality Labs [Meta's VR division], we are directing most of our investment towards glasses and wearables going forward," and added the company will focus on "making Horizon a massive success on Mobile and making VR a profitable ecosystem over the coming years." Meta said those investments were mostly funded by an overall increase in ad impressions of 12% and an increase in price per ad of 9%.

At the same time, Zuckerberg signalled a pivot to AI, saying, "Soon, we’ll see an explosion of new media formats that are more immersive and interactive, and only possible because of advances in AI," and pointing to AI-generated features such as the Vibes feed.

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