Meta, led by Mark Zuckerberg, reported a final profit of $5.7 billion in the first quarter, despite suffering a nearly $4 billion loss from its metaverse unit, Reality Labs. This loss follows a $14 billion loss in 2022, and Zuckerberg anticipates that Reality Labs’ operating losses will continue to increase year-over-year in 2023.
Zuckerberg emphasized that Meta’s developments in the artificial intelligence segment negate the losses suffered by Reality Labs. He added that AI is the company’s “single largest investment,” while Meta’s metaverse ambitions remain a top priority. Zuckerberg stated that the company has been focusing on both AI and the metaverse for years and will continue to do so.
Moreover, Zuckerberg explained that metaverse technology will assist the company’s AI visions, and vice versa. He mentioned that the firm is building a suite of creative and expressive tools that can improve the efficiencies of its existing products, including experiences with text, images, video, and multi-modal experiences.
Despite the positive news, Zuckerberg acknowledged that the firm has “a lot of foundational work to do” before it can provide “really futuristic experiences” for its audience. After the announcement of the better-than-expected first quarter, Meta’s stock increased by 11.7% after hours, according to Google Finance.