Reality Labs, a subsidiary of Meta dedicated to advancing the metaverse, reported an operating loss of $4.65 billion in the final quarter of 2023. Despite the significant financial setback, Meta remains committed to investing in virtual reality technology, with expenses reaching an all-time high in the last quarter of 2023.

According to Meta’s fourth-quarter earnings report, Reality Labs experienced a net loss of $4.65 billion in Q4 2023, marking an 8.5% increase compared to the same period in 2022. This loss represents the largest one recorded by Meta’s subsidiary to date, with cumulative losses exceeding $42 billion since late 2020.

However, there was a positive development in Meta’s revenue within Reality Labs, which soared from $727 million in Q4 2022 to over $1 billion in Q4 2023. This increase can be attributed to the launch of Meta’s Quest 3 VR headset last fall.

Mark Zuckerberg, Meta’s founder and CEO, expressed optimism about the company’s progress, stating, “We had a good quarter as our community and business continue to grow. We’ve made a lot of progress on our vision for advancing AI and the metaverse.”

Meta has been actively promoting the metaverse concept, with Zuckerberg emphasizing the company’s commitment to becoming a leader in metaverse development. The metaverse involves immersive virtual spaces interconnected through the Internet, and research suggests that the global metaverse market is projected to reach $322 billion by 2030.

Following the release of the earnings report, Meta’s shares experienced a 15% increase in extended trading, reaching $453 according to Google Finance. This positive response reflects investors’ confidence in Meta’s long-term strategy and commitment to the development of the metaverse.

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