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Applied AI·October 21, 2026·1 min read

Meta CEO Mark Zuckerberg says Muse and Reality Labs are highly unprofitable — for now

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Zuckerberg calling Muse’s compute costs and Reality Labs’ hardware losses ‘highly unprofitable’ is a clear signal that Meta is willing to subsidize AI assistants and devices at scale. If you’re building consumer AI or XR, assume years of price and performance pressure from a player treating these as strategic, not near-term P&L businesses.