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Home DeFi Metaverse

rewrite this title Meta Bets Everything on AI Superintelligence—What Happened to the Metaverse Dream? – XR Today

Rob Scott by Rob Scott
July 31, 2025
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rewrite this title Meta Bets Everything on AI Superintelligence—What Happened to the Metaverse Dream? – XR Today
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I hear you. You’re pondering Meta’s AI Gamble. Is This the Beginning of the End for the Metaverse?

The social media giant’s massive superintelligence investment raises critical questions about the future of immersive workplace technologies. Let’s dig in.

As someone who’s watched the XR industry’s meteoric rise and occasional stumbles, I find myself both fascinated and concerned by Mark Zuckerberg’s latest announcement. The Meta CEO’s commitment to spend “hundreds of billions of dollars” on AI data centers represents more than just a hefty investment—it’s a seismic shift that could fundamentally reshape the landscape of immersive technologies we’ve all been betting on.

The Numbers That Tell a Story

When Zuckerberg announced Meta’s superintelligence push on July 14th, the details were staggering. The company’s first multi-gigawatt data center, dubbed “Prometheus,” will come online in 2026, while another facility called “Hyperion” will scale up to 5 gigawatts. To put this in perspective, just one of these AI superclusters will cover “a significant part of the footprint of Manhattan.”

This represents a dramatic departure from the company that famously rebranded itself as “Meta” in 2021, promising to build the foundational infrastructure for the metaverse. Now, with the formation of “Superintelligence Labs” led by former Scale AI CEO Alexandr Wang and ex-GitHub chief Nat Friedman, the writing appears to be on the wall.

What This Means for XR Professionals

For those of us deeply invested in the extended reality ecosystem, Meta’s pivot raises uncomfortable questions. Forrester analyst Mike Proulx captured the sentiment perfectly: “So Long Metaverse. Hello Superintelligence.” His analysis reveals that 52% of US online adults feel more negatively about social media than they did a year ago, suggesting Meta’s timing might be strategic rather than coincidental.

The implications extend far beyond Meta’s internal strategy. Enterprise buyers who’ve been cautiously evaluating XR investments for training, collaboration, and digital transformation initiatives now face a critical decision point. If one of the industry’s largest players is shifting resources away from immersive technologies, what does this mean for the broader market?

“Superintelligence has the potential to begin a new era of personal empowerment. Meta’s vision is to bring personal superintelligence to everyone.” – Mark Zuckerberg

The Talent War’s Collateral Damage

Perhaps most telling is Meta’s aggressive talent acquisition strategy. The company recently poached Apple’s AI models engineer Bowen Zhang for its superintelligence team, part of what industry insiders describe as an unprecedented talent raid. When resources and top minds migrate from XR development to AI research, the ripple effects touch every corner of our industry.

Reading Between the Lines

D.A. Davidson analyst Gil Luria noted that while Meta’s AI investments have already boosted its advertising business, “at this scale, the investment is more oriented to the long-term competition to have the leading AI model.” This suggests Meta is playing a longer game—one where AI dominance trumps metaverse leadership.

For enterprise decision-makers, this shift demands strategic recalibration. Organizations that have delayed XR adoption might find themselves reconsidering whether to wait for AI-enhanced solutions or proceed with current immersive technologies. Meanwhile, companies already implementing XR solutions need contingency plans for potential platform shifts or reduced innovation in spatial computing.

The Integration Opportunity

However, this isn’t necessarily a zero-sum game. Meta’s focus on AI could ultimately enhance XR experiences through more intelligent virtual assistants, better natural language processing in virtual environments, and more sophisticated computer vision for mixed reality applications. The question is whether this evolution will happen fast enough to maintain momentum in the XR market.

Ponder This: The Crossroads of Two Futures

Standing at this technological crossroads, I can’t help but wonder if we’re witnessing the natural evolution of immersive computing or its premature abandonment. Meta’s superintelligence bet might create AI-powered spatial experiences that surpass anything we’ve imagined—or it could leave the XR industry without one of its most influential champions during a critical growth phase.

For innovation leaders and enterprise buyers, the lesson is clear: diversification matters more than ever. The future of workplace technology might not be XR versus AI, but rather how intelligently we integrate both to create genuinely transformative employee experiences.

What’s your take? Are we seeing the maturation of immersive tech through AI integration, or the beginning of its displacement?

Ready to dive deeper into the future of immersive workplace technology? Join our vibrant community of 2,000+ XR professionals on LinkedIn to continue this conversation and share your insights on Meta’s strategic shift. Don’t miss our weekly analysis of the most crucial XR industry developments—subscribe to our newsletter today.

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