Several years ago, Facebook—now known as Meta—launched an ambitious project called the Metaverse. However, despite spending more than US$60 billion, or around Rp 998 trillion, since 2020, the project has not produced the expected results.

Meta originally had a bold vision for the initiative. The virtual world they were building was intended to connect people and expand the market for its hardware products.

But according to a recent report, Meta plans to cut funding for the project. Bloomberg News, as reported by Reuters on Sunday (December 7, 2025), stated that the budget reduction could reach 30% for its 2026 financial plan.

The same report also indicated that the budget cuts may include layoffs, which could begin as early as January 2026.

Meta has not responded to requests for comment on the matter.

Meta’s metaverse initiative is housed under Reality Labs, the division responsible for developing the Quest mixed-reality headset, Ray-Ban smart glasses, and future augmented-reality devices.

Reuters noted that news of the budget reduction comes as Meta struggles to stay competitive in the AI race. The company’s Llama 4 model reportedly received a lukewarm response.

This year, Meta has set capital expenditures at US$72 billion, or about Rp 1,198 trillion. In total, the Instagram-owner may spend up to US$400 billion, or Rp 6,600 trillion, on AI throughout 2025.

Meta’s AI work is being developed under Superintelligence Labs. Mark Zuckerberg, the company’s CEO, is personally involved in overseeing the project and leading efforts to recruit top talent.

Reports suggest that Zuckerberg has been directly approaching targeted professionals—including those from various startups—offering multi-million-dollar compensation packages to persuade them to join Meta.