According to Meta's latest earnings report, the Reality Labs division lost $4.48 billion in the second quarter of 2024. This is much more than the $3.85 billion loss in the previous quarter.
Reality Labs is the main group working on CEO Mark Zuckerberg's vision for the metaverse (virtual world).
CNBC says that since late 2020, Reality Labs has cost the social media giant over $50 billion in total losses. However, the company still says it has not given up on the metaverse dream.
Nicola Mendelsohn, who leads Meta's global business, says it will take at least 10 years for the company to fully realize its vision. Meta is investing in AI and hardware to push the metaverse forward.
"We've been on a long journey with the work at Reality Labs and our investments in AI," Mendelsohn said.
In Q2, Reality Labs revenue reached $353 million, up 28% from last year. Most of this came from selling Quest VR headsets and Ray-Ban smart glasses.
In the past, Mark Zuckerberg called the metaverse the company's "next big step". The virtual world is imagined as a digital place where people can work and play more effectively.
In late 2021, the company changed its name from Facebook to Meta to show its ambition in this area. Despite spending tens of billions of dollars, the metaverse has not seen much success.
Today, advertising still makes up most of the company's revenue. The tech giant has even had to fire workers and reorganize after failed efforts to push the metaverse.
A visitor wears a virtual reality headset Meta Quest on May 24, 2024 in Paris, France. (Photo: CNBC)
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