Meta has essentially been using profits from its advertising empire to fund a massive technological bet on the future of computing. It's a reminder that a company can be extremely profitable overall while one of its major divisions loses billions for years, betting on a payoff that may take a decade or more to materialise.
Source: Financial Times
Frequently Asked Questions
Is Meta losing billions overall?
No — the Reality Labs losses should not be confused with Meta's entire business, which remains highly profitable overall.
What is Reality Labs?
It is Meta's division focused heavily on VR, AR and related technologies.
Why would Meta continue investing?
Because Meta believes immersive computing and related technologies could become important future platforms worth the current losses.