Last Updated on August 29, 2024
Meta Platforms to Close AR Studio, Redirect Focus to AI Investments
Studio Closure Announcement
Meta Platforms has announced it will be shutting down its augmented reality (AR) studio, Meta Spark, in a strategic move to allocate resources to other areas of growth, notably its expanding artificial intelligence (AI) sector.
The closure is set for January 14, 2025, with the company confirming it will continue to support AR effects developed internally.
Background and Shift in Focus
Meta Spark, designed to enable developers to create digital filters for use across Facebook, Instagram, and Messenger, was initially established to compete with Snapchat’s popular image filters.
However, the company has decided to redirect its focus and investment towards new priorities, particularly advancing AI technologies.
Financial Context and Future Investments
The decision comes as Meta Platforms faces significant financial challenges, having reported losses of approximately $50 billion on AR and virtual reality products up to January this year.
Despite efforts to market AR devices and headsets, the company has struggled to achieve desired outcomes in these areas.
Looking ahead, Meta is prioritizing AI as a major area of investment. CEO Mark Zuckerberg has emphasized that AI will be the firm’s central focus for the year, with plans to invest up to $40 billion in infrastructure to bolster AI capabilities, including the development of hardware, data centers, and servers.