Making a metaverse virtual universe, how will Mark Zuckerberg spend “mountain” of money?

Currently, more questions than answers are emerging around the concept of the metaverse, of a virtual world in which we will interact through technological tools, such as virtual reality glasses, virtual reality glasses. augmented virtual…

But Mark Zuckerberg, the chief executive officer of the social media giant Meta– The parent company of Instagram, WhatsApp, Facebook and Messenger believes that, and also believes that Menlo Park, Calif., will soon reap the rewards of this bold bet.

According to Bloomberg, the metaverse project will lose “significant” money over the next three to five years, CEO Mark Zuckerberg told shareholders on May 26. His comments came in response to a shareholder’s question about the return on investment of billions of dollars spent on metaverse-related projects at Facebook’s owners annual meeting. Because in the first quarter, Reality Labs, the division that executes Meta’s metaverse plans, reported a loss of $2.96 billion on revenue of $695 million. For all of 2021, the company’s Virtual Reality Labs lost $10.2 billion.

According to the CEO, many of Meta’s products are intended for an “internet embodiment” where users will be immersed in a virtual world, but it won’t be sustainable or popular anytime soon in the next 10 to 15 years.

“We want the most affordable hardware available to everyone, and make sure the digital economy thrives,” Zuckerberg told shareholders, Bloomberg reported.

In 2021 alone, the Meta company spent $10 billion designing its metaverse. They also have 10,000 employees working on Zuckerberg’s vision, and want to hire 10,000 more to work on the next metaverse project.

However, those plans are likely to be shelved after Meta imposed a hiring freeze in early May, amid expectations of a severe economic downturn.

Overall, the metaverse will eventually generate revenue by becoming a platform for creators and businesses to sell virtual products and services. However, at the meeting on May 26, one person called on Meta to issue a report and hold a shareholder vote on whether it is “prudential and appropriate to continue implementing” the metaverse. ” or not. But the shareholder’s proposal was rejected. Because Zuckerberg still holds a controlling stake in Meta.

Former and current Facebook employees told Insider in April that Zuckerberg has a lot of interest in the metaverse but lacks a coherent strategy for the project he sees as the future of the internet. Meanwhile, the company is betting on revenue growth from its investment in its short-form video service Reels.

Other proposals at the meeting included changing Meta’s use of concealment clauses in employment contracts related to harassment and discrimination, and publishing an independent human rights impact assessment. , and full disclosure of Meta’s lobbying and public policy practices.

Zuckerberg on metaverse: “I just think it’s inevitable”

Mark Zuckerberg has no regrets about rebranding his company. After rebranding to Meta, the company embarked on a dramatic shift from a social networking giant to a platform focused on AR and VR, building what it saw as the future of technology. “I want to live in a world where big companies use their resources to make a big impact,” the CEO told Protocol in an exclusive interview. Reception of the brand has been positive, he added, and work on the initial company transformation is underway.

“There was a lot more interest and excitement about the idea than expected as we planted our flag in the metaverse. This is what we’ll be doing for the next 20 years.”

However, the move to the metaverse will require collaboration, and Zuckerberg said the rebranding has prompted some of his colleagues to think about how they can contribute. “I see our role in advancing some of the underlying technology, building social platforms around it, and developing some of the creator’s work. But obviously everything else. had to happen, we couldn’t build the whole thing,” he said.

Additionally, Zuckerberg said he’s not worried that spending $10 to $15 billion a year on the metaverse is a step in the wrong direction. “Some people might think it’s a good bet, some might think it’s a bad bet. But in the end, I don’t think we’re in danger of having to go out of business because of that. there”.

Zuckerberg also asserted: “Metaverse is a vision that embraces many companies – the whole industry. You can think of it as the successor to the mobile Internet. And it’s certainly not something any company can do. will also build, but I think an important part of our next chapter is hopefully helping to build on that, in partnership with many other companies as well as creators and developers. develop”.