Meta's latest earnings report reveals that its Reality Labs division, which handles AR glasses, VR headsets, and VR software, lost another $4 billion in the first quarter of 2026. While such a loss might seem shocking, it has become the norm for Meta: over the past 21 quarters, the company has burned a total of $83.5 billion on this unit, averaging around $4 billion per quarter.
Despite these staggering figures, Meta remains highly profitable. The company posted a net income of $26.8 billion for Q1 2026, up 61% year-over-year, with revenue increasing 33% to $56.3 billion. However, Meta's spending on AI is set to surpass even its metaverse investments.
The social media giant now projects 2026 capital expenditures between $125 billion and $145 billion, exceeding analyst expectations and its own prior guidance. As Meta pivots from its metaverse ambitions to competing with AI leaders like OpenAI and Anthropic, its financial burn rate shows no signs of slowing.