Meta Platforms CEO Mark Zuckerberg has shared his vision for the future of his company, stating that he hopes to see a billion people using the metaverse and spending hundreds of dollars each on digital goods and content. Speaking to CNBC’s Jim Cramer, Zuckerberg revealed that he believes the metaverse will be a significant part of the social media giant’s business in the coming years.
Zuckerberg’s comments come as the company’s growth has slowed and the number of daily active users has declined. Investors have cut the company’s market capitalization in half this year, prompting Zuckerberg to direct the company’s focus towards the next generation of content, including virtual worlds where people can buy and sell digital goods.
Meta Platforms’ investment in augmented and virtual reality dates back to 2014, when it acquired headset maker Oculus VR for $2 billion. While shipments of headsets have yet to surpass those of PCs and smartphones, Zuckerberg expressed optimism about the performance of the company’s current-generation Meta Quest 2, which starts at $299.
Despite the slow uptake of the company’s hardware, Zuckerberg is confident that the metaverse will be a massive economic opportunity. He believes that experiences in the metaverse can be more immersive than text, photos, or videos, which are currently pervasive on Facebook and Instagram.
Zuckerberg has been meeting with investors and journalists in the metaverse, where he believes that such experiences can foster a sense of togetherness, even if people are physically on the other side of the country. He highlighted the possibility of making eye contact and having quiet side conversations using spatial audio, which he said can create a realistic sense of presence.
To bring this sense of presence to customers, Meta Platforms will need to release a stack of hardware, software, and experiences, which Zuckerberg said is a significant focus for the company. He also revealed that Meta is investing heavily in the development of artificial intelligence to bolster advertising and the company’s existing applications.
Zuckerberg said that the company is shifting from having most of the content on Facebook and Instagram come from a user’s friend or follow graph to having more and more of that content come from AI recommendations. As the AI recommendations get better, users will gain access to the whole universe of content available, he said.
The concept of AI recommendations was used by TikTok, which reached a billion monthly active users. Meta responded to TikTok’s rapid growth with the introduction of its Reels feature on Instagram in 2020, which now makes up over one-fifth of the time people spend on the platform. Zuckerberg said that AI enhancements will make Reels even more compelling to Instagram’s users.
As the company invests in the metaverse and AI, it will also need to invest in hardware for AI, alongside other large technology companies. Zuckerberg said that the company is working on developing hardware that can keep up with the advances in AI, which will be a critical part of the company’s future.
Takeaway
It is evident that Zuckerberg’s vision for the metaverse has the potential to revolutionize the way we interact with the world and with each other. Meta Platforms’ strategic investment in AI and hardware is a clear indication of their commitment to making this vision a reality. By harnessing the power of AI, Meta Platforms is poised to create an immersive and personalized experience for users, driving engagement and unlocking new revenue streams.
The metaverse is not just a buzzword, but a transformative concept that could lead to the creation of new industries and the reinvention of existing ones. Meta Platforms’ leadership position in this space places them at the forefront of innovation, giving them a unique opportunity to shape the future of digital experiences.
With the company’s focus on AI and hardware, Meta Platforms is well-positioned to capitalize on the potential economic opportunities of the metaverse. As more people embrace this new reality, there will be a significant demand for hardware and software that can support it. Meta Platforms’ investment in AI and hardware places them in a prime position to meet this demand and lead the way in this exciting new era of technology.
In summary, Zuckerberg’s ambitious vision for the metaverse is set to reshape our world in ways we have yet to fully imagine. As a company committed to innovation and technological advancement, Meta Platforms is well-equipped to be a leader in this space. With their strategic investment in AI and hardware, they are poised to unlock the full potential of the metaverse and create new opportunities for businesses and individuals alike. The future is bright, and Meta Platforms is at the forefront of it all.
