**Meta Platforms Reports Heavy AI Losses Amid Smart Glasses Strategy**
Meta Platforms (NASDAQ: META) is facing significant challenges in its shift to artificial intelligence, incurring losses of nearly $20 billion per year. Despite experiencing its fastest quarterly growth since the pandemic in Q1 2023, the company’s stock has declined by 17% year-to-date due to rising capital expenditures and concerns regarding its AI strategy.
In 2025, Meta’s Reality Labs division, responsible for smart devices and AI projects, reported revenue of $2.2 billion but suffered a loss of $19.2 billion from AI infrastructure spending. The company plans to allocate up to $15 billion of its expenses to wearables in 2026. A possible solution lies in Meta’s smart glasses, priced at $299 and set to leverage the new AI model, Muse Spark. In total, Meta sold over 7 million smart glasses last year, indicating growth opportunities, yet it would need to sell around 40 million units to contribute significantly to its revenue.
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