Meta Reports $4.5 Billion Loss in Reality Labs

Meta's Reality Labs division reported a staggering loss of $4.5 billion in Q2 2024, compounding total losses to nearly $60 billion since 2019. Despite these setbacks, Meta achieved $49 billion in overall revenue, marking a 22% year-over-year increase and a net income of $13.5 billion, largely attributed to advancements in AI and the popularity of its apps like Threads and WhatsApp. CEO Mark Zuckerberg expressed optimism about Meta AI, predicting it will become the world's most used AI assistant by the end of 2024. The company's CFO, Susan Li, noted that operating losses in Reality Labs are expected to increase due to ongoing product development and scaling efforts. Additionally, Meta reorganized Reality Labs into two divisions—Metaverse and Wearables—following a significant decline in the VR headset market. The upcoming Connect 2024 event is anticipated to showcase Meta's latest XR innovations, further emphasizing the company's commitment to AI and the metaverse despite financial challenges.