Mark Zuckerberg says there is an end in sight to Reality Labs’ years of multibillion-dollar losses after spinning off the company’s metaverse division earlier this year. The CEO said he expects to “gradually reduce” how much money the company is losing as it doubles down on AI glasses and moves away from virtual reality.

Speaking during Meta’s fourth-quarter earnings call, Zuckerberg was clear that changes won’t happen soon, but is optimistic about the division losing more than $19 billion in 2025 alone. “For Reality Labs, we are directing most of our investment in glasses and wearables going forward, while focusing on making Horizon a huge success on mobile and making VR a profitable ecosystem for years to come,” he said. “I expect Reality Labs losses this year to be similar to last year, and this is likely to be the peak, as we begin to gradually reduce our losses going forward.”

The company is cutting more than 1,000 employees from Reality Labs earlier this month, was shut down three VR studios and announces plans to retire its app for VR meetings. Also meta stopped plans for a third-party Horizon OS headset. Instead, Meta is doubling down on its smart glasses and wearables business, which is more neatly tied to Zuckerberg’s vision of creating AI “superintelligence.”

During the call, Zuckerberg noted that sales of Meta’s smart glasses will “more than triple” by 2025, and announced bigger plans for AR glasses. “They (AI glasses) can see what you see, hear what you hear, talk to you and help you go about your day and even show you information or create a custom UI right there in your vision,” he said.

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