Since acquiring Oculus in 2014, Meta's cumulative spending on VR and AR has surpassed $80 billion, with another $20 billion earmarked for 2025.

Meta is set to invest over $100 billion in virtual and augmented reality (VR and AR) in 2025, with CEO Mark Zuckerberg declaring it a pivotal year for the company's smart glasses division.

The company plans to boost its investment in Reality Labs by an additional $20 billion this year, with total capital expenditures projected between $60 billion and $65 billion, focusing on generative AI and core business enhancements.

Reality Labs, Meta's dedicated division, is responsible for developing the Ray-Ban Meta smart glasses and Quest VR headsets.

Despite these investments, the Quest VR headsets have not gained widespread popularity, with around 30 million units sold to date.

This news comes on the heels of Apple pausing its smart glasses project due to a lukewarm reception of its VR headset.

Competitors like Apple and Google are also actively working on innovative devices in the VR and AR landscape.

Zuckerberg's strategy aims to create a new computing platform that could potentially replace smartphones, thereby reducing dependency on Apple and Google for app distribution.

Despite facing significant losses, Meta remains optimistic about the long-term potential of VR and AR products as key growth drivers.

Zuckerberg highlighted that the Ray-Ban smart glasses sold 1 million units in 2024, which he described as a 'real hit', although the Quest VR headsets have seen slower market adoption.

Tech investor Matthew Ball commented on the scale of Meta's investments in Reality Labs, suggesting that while substantial, they may be justified if the company successfully challenges Apple's iOS.

Additionally, Meta is developing advanced AR glasses, having unveiled a prototype named Orion in September 2024, aimed at better integrating virtual content with the real world.