Meta Platforms saw its stock jump roughly 6.3% in premarket trading, a move fueled by reports that the company is preparing to cut Reality Labs spending by as much as 30%. The metaverse dream isn’t dead, but it’s clearly being asked to take a smaller seat at the table.
The beneficiary of those freed-up dollars: artificial intelligence. Meta has been on a capital expenditure tear in 2026, with guidance now set at $125B to $145B for the year. That’s up from an earlier range of $115B to $135B.
Reality Labs takes a haircut
A potential 30% budget reduction signals that Meta is redirecting resources toward AI, where the competitive landscape demands massive infrastructure investment right now.
The irony is hard to miss. Meta literally renamed itself after the metaverse concept in 2021. Now the company is quietly de-emphasizing the very division that inspired its corporate identity.
