Meta continues $4B quarterly losses on AR/VR Reality Labs
Original: Meta is still burning money on AR/VR
Why This Matters
Shows Meta's massive sustained investment in emerging tech despite mixed returns
Meta reported $4 billion quarterly losses on Reality Labs, its AR/VR division, marking consistent spending patterns. Over 21 quarters since 2021, Meta has lost $83.5 billion total on Reality Labs, averaging $4 billion per quarter.
Meta's Reality Labs division lost $4 billion in Q1 2026, continuing a pattern of heavy losses on AR/VR investments. Since 2021, the company has lost $83.5 billion total across 21 quarters, averaging $4 billion in quarterly losses. Despite strong overall performance with $26.8 billion net income (up 61% year-over-year) and $56.3 billion revenue (up 33%), Meta is shifting focus to AI competition. The company projected 2026 spending of $125-145 billion, exceeding analyst estimates. CEO Mark Zuckerberg cited higher component costs, particularly memory pricing, as driving increased infrastructure spending. Meta hired over 50 AI researchers from competitors last year and launched its Muse Spark AI model.