The Rundown Deep Dive: Is Meta Having an Identity Crisis?
Mar 28, 2026
A close look at Meta's strategic U-turn from the metaverse to an AI-first focus. Big spending on AI infrastructure and hiring clashes with recent layoffs and Reality Labs cutbacks. Legal verdicts and regulatory risks loom over ad revenue. Hardware experiments like smart glasses get weighed against product setbacks and investor worries.
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Zuckerberg's Metaverse Bet Turned Public Embarrassment
- Mark Zuckerberg went all-in on the metaverse after buying Oculus and rebranding Facebook to Meta in 2021.
- Reality Labs built Horizon Worlds and VR hardware but produced low engagement and heavy losses, prompting ridicule like Zuck's cartoony metaverse selfie in 2022.
ChatGPT Sparked Meta's Rapid AI Pivot And Restructuring
- ChatGPT's November 2022 launch triggered Meta's rapid pivot to AI and cost-cutting with a 'year of efficiency' in 2023.
- Meta cut over 21,000 jobs, improved Reels, and saw stock rebound from under $100 to record highs by 2025.
Reality Labs Losses Fueled A Massive AI CapEx Shift
- Reality Labs lost over $80 billion since 2020, forcing Meta to cut Reality Labs and reallocate capital toward AI.
- Meta plans $115–$135 billion in AI CapEx in 2026 to build GPU-packed data centers across multiple U.S. states.