Meta's Metaverse division loses $4 billion in Q1

Techub News, according to CryptoBriefing, Meta's Reality Labs division reported a loss of $4 billion in the first quarter of 2026, highlighting its financial pressure in VR/AR operations. The results come as Meta adjusts its AI strategy, shifting from open-source to the upcoming closed-source "Avocado" model.

The division has long borne the primary losses from Meta's metaverse investments, but the company still plans to maintain high AI infrastructure spending. With the current intensifying AI competition between China and the U.S., Chinese labs are advancing open-source models at lower costs, challenging Meta's technological leadership and affecting market expectations for its short-term stock performance.