Meta CEO Mark Zuckerberg says Muse and Reality Labs are highly unprofitable — for now

Meta says several of its biggest prosperity incinerators could eventually commencement turning profits.

The social media giant, which generated complete 97% of its quarterly income from ads, has faced persistent questions from investors about the deficiency of profitability in its AI and hardware initiatives.

Meta CEO Mark Zuckerberg addressed those concerns head-on during its third-quarter earnings call on Wednesday.

Zuckerberg stated that Muse, the AI assistant it launched final month, is unprofitable since it's "very compute intensive to run." Meta expects to commencement turning that about next twelvemonth by massively improving Muse's efficiency.

"If compute effectiveness continues improving quickly for another few years, which we think is extremely likely, afterward Muse volition be extremely profitable complete multiple years," he said.

Meta plans to create prosperity from Muse by taking a small transaction fee off of purchases it drives, Zuckerberg stated at Meta's Connect gathering final month.

Zuckerberg added that Muse, which launched lone in the US and Canada, wasn't launched globally due in part to the amount of compute it requires. (Meta's North American users are mostly its most lucrative.)

Zuckerberg additionally struck a affirmative note concerning its cash-hemorrhaging Reality Labs division, which makes products akin Meta Ray-Bans and virtual actuality glasses.

Reality Labs volition narrow its losses to concerning $15 milliard in 2027, downward from the $18 to $19 milliard it expects to endure this year. The division should commencement trending toward profitability next year, as Meta's AI systems create it additional useful, Zuckerberg said.

"I continue to accept that the way to delivering holographic experience, of bringing together the bodily and digital worlds and mundane glasses, volition arrive through VR first," Zuckerberg said.

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