Meta CEO Mark Zuckerberg says Muse and Reality Labs are highly unprofitable — for now (www.businessinsider.com)

Meta CEO Mark Zuckerberg recently addressed investor concerns about the unprofitability of the company's AI and hardware initiatives during the third-quarter earnings call. He revealed that Muse, the AI assistant launched last month, is currently unprofitable due to its high computational demands, although the company anticipates improvements in its efficiency that could lead to profitability within a few years. Muse aims to generate revenue through a small transaction fee on purchases it facilitates, but its limited launch scope to the U.S. and Canada reflects the significant compute resources it requires. Additionally, Zuckerberg provided an optimistic outlook for the Reality Labs division, which has been a major financial drain for Meta. He expects losses to narrow to around $15 billion by 2027, down from expected losses of $18 to $19 billion this year. The integration of AI technologies is anticipated to enhance the division's products, such as virtual reality glasses, and ultimately lead to profitability. Zuckerberg emphasized the importance of developing a holographic experience as a long-term goal, suggesting that advancements in VR are critical for merging physical and digital realities.