Meta Faces Challenges Amid Shifting Focus to AI and Smart Glasses

<figure> <img alt="Caricature of Mark Zuckerberg holding a swinging pocket watch in front of a swirly Meta vortex." src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/268630_META_FALLING_APART_CVIRGINA0.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="has-drop-cap wp-block-paragraph">In 2021, as a whistleblower emerged with allegations that Facebook was harming children, CEO Mark Zuckerberg posted a rebuttal on Facebook. “We care deeply about issues like safety, well-being and mental health. It’s difficult to see coverage that misrepresents our work and our motives,” he wrote in a note to Meta staff, which he reposted publicly. “At the most basic level, I think most of us just don’t recognize the false picture of the company that is being painted.”</p> <p class="wp-block-paragraph">One reader expressed concerns to Zuckerberg privately via WhatsApp, urging him to prioritize child safety in his messaging. “I am not saying Facebook is duplicitous and evil,” they wrote. “I am saying the opposite, you have heard the chorus and will PERSONALLY make this issue over adolescents your issue.” Zuckerberg responded, “I care deeply about this and we’ll continue focusing on being industry-leading with young people,” but noted that his primary focus was on building the metaverse.</p> <p class="wp-block-paragraph">Zuckerberg later reiterated his concern for child safety but shifted the conversation towards his vision for the future. “How do you think this fits with our focus on promoting building the metaverse as the next major opportunity?” he asked. This conversation preceded the company's rebranding to Meta, emphasizing its new priorities.</p> <p class="wp-block-paragraph">Years later, concerns about online child safety have increased, while discussions about the metaverse have diminished. This exchange reflects how Zuckerberg has managed Meta, focusing on new opportunities. Facebook’s previous motto was “Move fast and break things,” which may now be more accurately described as “Move fast, break things, move on.”</p> <p class="wp-block-paragraph">Meta's products have been central to online activity for two decades, but the company now faces numerous challenges. Lawsuits have increased as regulators scrutinize social media. A push into smart glasses has resulted in negative press, including the label “pervert glasses.” The company is also perceived to be lagging in the AI sector, and public perception of Zuckerberg has declined.</p> <p class="wp-block-paragraph">Despite these challenges, Meta remains a significant player. It has a profitable social media business and is a leader in AI-powered smart glasses, which are viewed as the next mobile computing platform. The company has also addressed potential regulatory threats. Its latest platform, a personal AI agent called Muse, was released in early September, marking Zuckerberg's next project.</p> <p class="wp-block-paragraph">Muse has shown promising early numbers, with over 600,000 daily active users in the US, ranking high on the iOS App Store charts. However, questions remain about whether a company with a history of safety and privacy issues can become a trusted AI provider.</p> <h2 class="wp-block-heading" id="the-glasses-gamble"><a href="https://www.theverge.com/rss/index.xml#the-glasses-gamble">The glasses gamble</a></h2> <p class="wp-block-paragraph">When Zuckerberg announced the rebranding of Facebook to Meta, he emphasized a new identity focused on the metaverse, a virtual space for socializing and collaboration. Following the pandemic, Meta committed to this vision, but nearly five years later, its Reality Labs division has reported over $80 billion in operating losses. The company has made significant cuts, including layoffs and discontinuing certain projects.</p> <p class="wp-block-paragraph">Despite these setbacks, Meta has found success in the smart glasses market, selling approximately 2 million units of its second-generation Ray-Ban Meta glasses. By the end of 2025, its partner EssilorLuxottica had sold an additional 7 million units, with sales reportedly doubling in Q2 of 2026.</p> <p class="wp-block-paragraph">Zuckerberg and Meta leadership view smart glasses as a vehicle for their AI investments, branding them as AI glasses. Zuckerberg stated that in the future, those without AI-integrated glasses may face a cognitive disadvantage.</p> <p class="wp-block-paragraph">Meta continues to invest heavily in augmented reality, but profitability remains uncertain. Analysts note that while Meta leads in market share, the long-term viability of its investments in XR (extended reality) is still unclear.</p> <p class="wp-block-paragraph">Meta's smart glasses have faced backlash due to privacy concerns, with users misusing the technology. Activists have launched campaigns to highlight these issues, and Meta has attempted to address privacy concerns through policy changes, though critics view these as reactive measures.</p> <p class="wp-block-paragraph">Despite these challenges, analysts believe that Meta's reputation may not significantly impact its smart glasses sales in the short term. However, the company has been criticized for its handling of privacy issues and the perception that it has not adequately addressed user concerns.</p> <p class="wp-block-paragraph">Zuckerberg's leadership style has been described as determined, with a focus on pursuing new technologies. Meta's recent AI initiatives have faced internal challenges, with reports of low morale and scattered strategies within the company.</p> <p class="wp-block-paragraph">Meta's AI efforts have included significant investments and attempts to recruit top talent, but the company has struggled to produce impactful results. Internal reports describe a chaotic environment, with conflicting goals between teams.</p> <p class="wp-block-paragraph">Despite these challenges, Meta continues to push forward with its AI initiatives, including the release of Muse. However, the company's future in the AI space remains uncertain, with some employees expressing skepticism about its direction.</p> <p class="wp-block-paragraph">Meta's advertising business remains strong, with significant revenue growth reported. However, concerns about user engagement and the changing landscape of social media present ongoing challenges for the company.</p> <p class="wp-block-paragraph">As Meta navigates these challenges, it faces scrutiny from regulators and the public regarding its practices and impact on society. The company continues to adapt its strategies in response to these pressures, but its long-term success remains to be seen.</p> <p class="wp-block-paragraph">In response to inquiries, Meta spokesperson Alex Dziedzan stated, “At Meta, our philosophy is simple: let our teams deliver. We encourage you to check out Connect to learn more.”</p> <p class="wp-block-paragraph">Overall, while Meta has made strides in certain areas, it must address ongoing concerns about privacy, user engagement, and its overall business strategy to maintain its position in the competitive tech landscape.</p> <h2 class="wp-block-heading" id="the-cash-cow"><a href="https://www.theverge.com/rss/index.xml#the-cash-cow">The cash cow</a></h2> <p class="wp-block-paragraph">Instagram has evolved significantly since its acquisition by Meta in 2012, becoming a major revenue source for the company. Despite facing criticism for changes that mimic competitors like TikTok, Instagram remains a key player in the creator economy, generating substantial advertising revenue.</p> <p class="wp-block-paragraph">Meta has attempted to diversify its revenue streams through other platforms, including WhatsApp and Threads, but Instagram continues to be central to its business model.</p> <p class="wp-block-paragraph">As social media usage patterns shift, Meta faces challenges in attracting younger users while maintaining its advertising revenue. Analysts warn that the company must adapt to changing user preferences to remain relevant in the evolving digital landscape.</p> <p class="wp-block-paragraph">Concerns about the impact of AI on content creation and user engagement also pose challenges for Meta as it navigates the future of social media.</p> <p class="wp-block-paragraph">Overall, Meta's ability to address these challenges while continuing to innovate will be crucial for its long-term success in the competitive tech industry.</p> <p class="wp-block-paragraph">The company remains under scrutiny from regulators and the public, and its future direction will depend on its ability to adapt to the changing landscape of technology and user expectations.</p> <p class="wp-block-paragraph">As Meta continues to evolve, it faces a complex set of challenges that will require strategic decision-making and a focus on user trust and engagement.</p> <p class="wp-block-paragraph">In summary, Meta's journey reflects the broader trends in the tech industry, highlighting the need for companies to balance innovation with responsibility and user engagement.</p> <p class="wp-block-paragraph">The future of Meta will depend on its ability to navigate these challenges while maintaining its position as a leader in the tech landscape.</p>