In June 2022, several artificial intelligence (AI) initiatives that were previously a part of Meta AI were transitioned to Reality Labs. This also includes Meta's fundamental AI Research laboratory FAIR which is now part of the Reality Labs - Research (RLR) division.

https://en.wikipedia.org/wiki/Reality_Labs

This is wild.

Their accounting could massively hurt the VR industry (to the point, the comment above about how it’s too bad VR can’t be profitable).

IMO it’s not AI or VR that will take over, but a combination of the two.

All the ai research is under reality labs through FAIR. Theyre spending billions on GPU buy alone. You can claim gen ai is a necessity for the metaverse but I do think its a bit misleading to say VR lost 4 billion this quarter when a huge amount of that went to an open source LLM