The Hidden $47 Billion Product Meta Has Been Investing In

When Facebook rebranded to Meta in 2021, it wasn’t just about changing a name—it was a signal that the company wanted to move beyond its social media roots. Facebook, WhatsApp, and Instagram were still performing well, but CEO Mark Zuckerberg had bigger ambitions. The future, he said, was the metaverse.

There was genuine hype surrounding virtual reality back then. Many in the tech industry believed the technology was finally ready for the mainstream.

As Leo Gebbie, principal analyst at CCS Insight, put it: “There was genuinely a need and a desire at the time for Facebook, the company, to rebrand into something else… There was a bit of a sense in 2020 and into 2021 that this was a ready technology, that it was finally going to hit the big time.”

So, what exactly was the metaverse supposed to be? The idea was a mix of virtual spaces where people could meet, play, work, or shop in 2D, 3D, or even through AR experiences projected into the real world. Think of it as an immersive internet where you could step inside instead of scrolling.

That was the vision. However, several years later, nearly $47 billion later, it still hasn’t taken off with consumers. While Meta’s leading platforms continue to generate revenue and dominate the social media space, the metaverse side of things, developed under Meta’s Reality Labs division, has been quietly burning through cash with little to show.

Since 2019, the metaverse project has racked up massive losses. And yet, Meta is still going.

Mark Zuckerberg is reportedly all in on building the metaverse.

Zuckerberg remains confident. “The defining quality of the metaverse will be a feeling of presence,” he said when announcing the rebrand. “Feeling truly present with another person is the ultimate dream of social technology. That is why we are focused on building this. In the metaverse, you can do almost anything you can imagine.”

From his point of view, this is the long game, and Meta executives echo that sentiment. Nicola Mendelsohn, Meta’s head of global advertising relationships, said during a World Economic Forum panel last year that it could take a full decade for the vision to come to life.

“We’ve been on a journey of over a decade,” she said, referencing the company’s work in both Reality Labs and AI. “We continue to invest significantly in both areas.”Getty Images

Meta has poured $47 billion into developing the metaverse.

That kind of commitment might sound admirable or foolhardy, depending on whom you ask. Critics point out that the metaverse still lacks a clear purpose that resonates with regular users. The hardware is expensive, and the experiences aren’t sticky. Most people just aren’t interested, at least not yet.

Dan Ives, a tech analyst at Wedbush Securities, didn’t mince words: “This continues to be a risky bet by Zuckerberg and the team because, for now, they’re betting money on the future while they continue to face massive headwinds in their core business.”Getty Images

And those headwinds are real. Meta has faced scrutiny over privacy issues, changing user behavior, growing competition (especially from TikTok), and shifting online ad dynamics. The pressure remains while the company has rebounded somewhat, especially after leaning into AI and efficiency improvements.

Still, Zuckerberg seems undeterred. From his perspective, the metaverse is more than just a side project; it’s what’s next. Whether it will pay off is still anyone’s guess. But one thing’s clear: Meta is willing to wait. And spend.

The Future of the Metaverse

As the metaverse continues to develop, experts like Cal Newport, a productivity expert, emphasize the significance of a structured approach to digital immersion. He notes that while virtual reality offers exciting potential, it can also lead to cognitive overload if not managed properly.

Newport suggests that individuals and companies should establish clear boundaries for their virtual engagements, incorporating regular breaks and mindful usage. This strategy can enhance creativity and prevent burnout, ultimately leading to more sustainable engagement with emerging technologies.

Mark Zuckerberg's vision for the metaverse raises questions about social interaction in digital spaces. Dr. Esther Perel, a renowned couples therapist, points out that virtual environments can sometimes distort human connection.

She emphasizes the importance of preserving authentic relationships, suggesting that developers should prioritize features that foster genuine interaction rather than merely enhancing engagement metrics. By integrating elements that promote emotional bonding, the metaverse can become a space where real connections thrive, reflecting our innate social needs.

Solutions & Coping Strategies

In summary, the metaverse represents both an exciting frontier and a potential challenge. Experts like Dr. Esther Perel and Cal Newport encourage a balanced approach that emphasizes authentic connections and mindful engagement. As we forge ahead, prioritizing mental well-being and social integrity in these digital landscapes will be crucial.

By implementing strategies that promote healthy interactions and cognitive clarity, we can ensure that the metaverse serves as a positive extension of our real-world experiences, rather than a source of disconnection.