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Meta Platforms (NASDAQ: META) reported a strong advertising performance in Q2, while its Reality Labs segment continues to struggle, losing over $18 billion in the last year. CEO Mark Zuckerberg remains optimistic about Reality Labs, aiming for AI glasses to potentially replace smartphones.
Zuckerberg on the Future of AI Glasses
During the Q2 earnings call, Zuckerberg suggested that AI glasses could become the ideal form for interacting with artificial intelligence, hinting at a cognitive disadvantage for those who do not wear them. He sees this technology as essential for future interactions.
Market Potential and Competition
The global market for AI glasses could reach $400 billion, significantly larger than Meta’s recent revenues. This comes as Apple’s iPhone innovation slows, with a revenue growth rate of just -2.4% in 2023. In contrast, Meta’s R&D spending exceeds 27% of its revenue, signaling a strong commitment to innovation that may present opportunities against Apple.
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