Meta Stock Surges on Plans for Metaverse Cuts | Bloomberg Tech 12/4/2025

Meta is planning to significantly reduce its spending on the metaverse, with CEO Mark Zuckerberg announcing a strategic shift that includes a 30% budget cut for the metaverse unit. This decision follows a substantial loss of over $77 billion in the immersive online worlds initiative, reflecting ongoing challenges in monetizing this venture.

Meta has recruited top design talent from Apple to enhance its software user interface and improve the overall user experience of its AI hardware. This strategic move aims to make Meta's offerings more appealing and user-friendly in a competitive market.

Moore Threads Technology Co., a prominent Chinese AI chipmaker, commenced trading on the Shanghai stock exchange, marking the second-largest initial public offering (IPO) in China this year. This significant event underscores the growing interest and investment in the AI sector within the country.

Nvidia has announced the discontinuation of support for its Linux 590 driver for GTX 900 and 10-series GPUs, marking the end of Game Ready updates for these older graphics cards. While quarterly security updates will still be provided, this decision signals a significant shift in Nvidia's support strategy for legacy hardware.

The latest Market Talks provide insights into key players in the technology sector, including Snowflake, Salesforce, Meta, and C3.ai, highlighting their recent developments and market performance.

Meta is planning to cut its metaverse unit budget by 30%, shifting its focus towards augmented reality wearables, particularly its successful augmented reality glasses. This decision reflects a strategic reassessment of the company's financial priorities under CEO Mark Zuckerberg.

Meta is set to reduce its metaverse unit budget by 30%, a significant cut that reflects a strategic shift under CEO Mark Zuckerberg as the company reassesses its financial priorities. This decision comes amid ongoing scrutiny and challenges in demonstrating profitability in its ambitious metaverse project.

Minda Smiley, a senior analyst at EMARKETER, expressed that she is not surprised by Meta's decision to cut resources for its metaverse unit, highlighting the company's ongoing challenges in monetizing this venture. This discussion took place during an interview on Bloomberg Tech with Caroline Hyde and Ed Ludlow.