Zuckerberg Outlines Path to Profitability for AI and Hardware Units

Meta currently relies on advertising for over 97% of its revenue, leaving its experimental divisions under intense scrutiny. Zuckerberg defended the high costs, noting that Muse is compute-intensive by design. The company aims to offset these expenses by drastically improving model efficiency over the next few years and eventually collecting transaction fees on purchases facilitated by the assistant. Currently limited to the U.S. and Canada, the tool's global rollout remains paused due to these hardware constraints.

Meanwhile, the Reality Labs division, responsible for virtual reality gear and smart glasses, is projected to lose between $18 billion and $19 billion this year. Zuckerberg signaled a shift in trajectory, projecting that annual losses will shrink to approximately $15 billion by 2027. He emphasized that integrating advanced AI systems into these devices will increase their utility, creating a stronger foundation for the company’s vision of holographic computing and everyday smart eyewear.