Meta’s Reality Labs, responsible for metaverse development, reported a $6.02 billion loss in Q4, a 21% increase year-over-year. Despite the losses, Meta CEO Mark Zuckerberg expects them to peak this year as the company shifts focus towards AI and wearable devices.

Meta’s Reality Labs unit reported a $6.02 billion operating loss in the fourth quarter, exceeding analyst expectations of a $5.67 billion loss. Despite a 13% increase in sales, the unit’s losses rose 21% year over year, bringing the total operating losses since late 2020 to nearly $80 billion. Meta plans to reduce these losses while continuing to develop its metaverse vision.