On the earnings call this month, Zuckerberg touted Meta’s use of AI to power its ranking and recommendation systems, and said the company was “exploring” ways to incorporate generative AI into WhatsApp and Messenger and was working on “visual creation tools” for posts and ads on Instagram and Facebook. With the metaverse struggling, Meta is increasingly talking about its work on artificial intelligence – in particular generative AI. “When you change your company name to the name of the product, you’ve got to follow through.” “Zuckerberg made an unusual commitment both in terms of the amount of money that was devoted to 3D-related pursuits and the very symbolic gesture of changing the company name,” he said. Meta has painted itself into a corner with the aggressive rebrand, said Paul Barrett, deputy director of the NYU Stern Center for Business and Human Rights. Moving away entirely from the metaverse after its flashy launch in October 2021 is a pivot the company cannot afford. Its flagship virtual platform, Horizon Worlds, reportedly has fewer than 200,000 active users. But its Reality Labs unit reported a $3.99bn operating loss in first-quarter results posted this month, after losing $13.72bn last calendar year. The company is devoting more than $10bn a year to develop the interactive world. The company is facing growing worries from investors that the ambitious metaverse project is draining too many resources without profit to show. But neither is the virtual reality world the only product Meta has bet its future on, Zuckerberg argued: “We’ve been focusing on both AI and the metaverse for years now, and we will continue to focus on both.”
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