Meta claims that two high-loss businesses are expected to turn into cash cows
Businessinsider
52m ago
Ai Focus
Meta indicates that some of its most costly businesses may finally start to turn a profit. CEO Mark Zuckerberg said during the third-quarter earnings call on Wednesday that AI, which was launched last month, is still not profitable due to the "very intensive" computing power required to operate it. However, the company expects to reverse this situation next year by significantly improving efficiency. Zuckerberg also stated that the losses from Reality Labs will narrow to around $15 billion in 2027, lower than the estimated $18 to $19 billion for this year, and said that this division should begin to move towards profitability next year.
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Meta indicates that some of its most money-consuming businesses may finally start to turn a profit.

Meta CEO Mark Zuckerberg responded positively to these concerns during the third-quarter earnings conference call on Wednesday.

Zuckerberg stated that the AI assistant Muse launched last month by Meta has not yet made a profit, as it “requires a very high level of computing power to operate.” Meta expects that next year, this situation will begin to change through a significant improvement in the efficiency of Muse.

He said, "If the efficiency of computing power continues to improve rapidly in the coming years, we believe this scenario is very likely to occur. Then Muse will achieve high profits over several years."

Zuckerberg stated at the Meta Connect conference last month that Meta plans to make money by charging a small transaction fee for purchases facilitated through Muse.

He added that Muse is currently only available in the United States and Canada, partly because it requires a high level of computing power. (Users of Meta in North America are usually also its most profitable users.)

Zuckerberg also expressed positive views on the Reality Labs department. This department produces products such as Meta Ray - Bans and virtual reality glasses, but it has been continuously losing money.

Zuckerberg said that the loss of Reality Labs in 2027 will narrow to about $15 billion, which is lower than the expected loss of $18 billion to $19 billion for this department this year. As the AI system of Meta makes these products more useful, the department should start to move towards profitability next year.

Zuckerberg said, "I still believe that the path to bringing holographic experiences, combining the physical world with the digital world, and wearing glasses in our daily lives will first be realized through VR."

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