Meta CEO Mark Zuckerberg says Muse and Reality Labs are highly unprofitable — for now
Source: Business Insider ·
Meta CEO Mark Zuckerberg says its AI assistant Muse has "very high compute costs" while its hardware division remains highly unprofitable.
From the source
Meta CEO Mark Zuckerberg.Finn Gomez/Getty ImagesMeta's AI agent, Muse, is unprofitable due to "very high compute costs," CEO Mark Zuckerberg says.Meanwhile, Meta expects Reality Labs, its AI glasses division, to lose $15 billion next year.The social media giant has a plan to fix that.Meta says some of its biggest cash incinerators could finally start turning profits.The social media giant, which generated over 97% of its quarterly revenue from ads, has faced persistent questions from investors about the lack of profitability in its AI and hardware initiatives.Meta CEO Mark Zuckerberg addressed those concerns head-on during its third-quarter earnings call on Wednesday.Zuckerberg said that Muse, the AI assistant it launched last month, is unprofitable since it's "very compute intensive to run." Meta expects to start turning that around next year by massively improving Muse's efficiency."If compute efficiency continues improving quickly for another few years, which we think is highly…
BestAIBroker analysis
- Finance-aware sentiment: negative (-0.40 on a -1 to +1 scale).
- Event classification: EARNINGS.
- Market importance score: 40/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
- Symbols referenced: AI.