Meta abandoned its open-source approach with the Muse Wonder model to enter direct competition with OpenAI and Anthropic for enterprise and corporate clients.
Meta’s strategic shift from the metaverse to AI and glasses
The closed Muse Wonder model and competition with OpenAI and Anthropic
Ray-Ban audio glasses and lightweight virtual reality glasses
Metaverse budget cuts following losses exceeding $70 billion
Frequently asked questions
Meta’s strategic shift from the metaverse to AI and glasses
Mark Zuckerberg, CEO of Meta Platforms, confirmed that his company has successfully caught up with the leaders in the artificial intelligence field. On Monday, October 12, 2026, the company launched the “Muse Wonder” family, its most powerful AI models developed to date. Just one day later, it began selling camera-free smart audio glasses, and it is also preparing to launch virtual reality glasses designed in the shape of regular glasses next spring.
These consecutive steps demonstrate the extent of Meta’s shift in focus away from the “metaverse” project—a bet that has cost the company tens of billions of dollars since 2021—toward a strong push into AI agents and face-worn computers.
In an interview with the Financial Times, Zuckerberg stated that the “Muse Wonder” model will enable more advanced behaviors and capabilities that stand at the cutting edge of what is being achieved in the AI field. He also wrote on the X platform that the model moves the company into the top tier, causing Meta shares to rise by about 4 percent in midday trading according to Reuters.
The closed Muse Wonder model and competition with OpenAI and Anthropic
Meta explained in its official blog that 14 months ago it began a comprehensive restructuring of its AI efforts, moving from rebuilding foundations to pushing the outer technical limits. The company introduced two models: “Muse Wonder” and “Muse Wonder Full.” According to The New York Times, both models achieved results close to Anthropic’s top models in logical reasoning, writing, and coding tests based on data provided by Meta.
The “Muse Wonder” model will power the paid tiers of the “Muse” personal assistant launched by the company last September, and developers can also use it via Meta’s model APIs and the “Muse Code” tool. Unlike Meta’s previous open-source approach, the new model is closed-source, and its most powerful versions will be sold directly to enterprises, putting Meta in direct competition with OpenAI and Anthropic for corporate clients.
Zuckerberg pointed out that his company focuses on personal empowerment for individuals rather than competitors who focus on office work, while Gizmodo warned of financial and security risks, with Meta projecting spending of at least $600 billion on data centers through the end of 2028 amid reports of security vulnerabilities discovered ahead of the Muse launch.
Ray-Ban audio glasses and lightweight virtual reality glasses
On Tuesday, October 13, Meta began selling the camera-free “Ray-Ban Meta Audio” glasses on the market. At the same time, CNN reported that the company’s new virtual reality glasses, priced at around $1,300 and weighing only about 3.5 ounces, will ship to customers in the spring with the Muse assistant integrated inside them.
Ryan Cairns, Meta’s vice president of virtual reality, said the goal of these devices is to expand the places where people can use computers rather than replacing computers entirely, adding: “I can wear the virtual reality glasses on a plane and effectively have the equivalent of 3 work screens right in front of me.”
However, some analysts remain unconvinced by the viability of this bet. Daniel Newman, CEO of Futurum Research, said: “These glasses still feel somewhat like a solution looking for a nonexistent problem.”
Metaverse budget cuts following losses exceeding $70 billion
This retreat from the metaverse project actually began late last year. In December 2025, Bloomberg reported that Meta’s management planned to cut the 2026 metaverse budget by up to 30 percent, with the bulk of these cuts falling on the virtual reality division and the Horizon Worlds platform.
At that time, losses for the company’s Reality Labs division had surpassed the $70 billion mark since the beginning of 2021, forcing the company to redirect its resources toward generative AI.
The fundamental question facing Meta today remains whether consumers will want to add yet another new device to their daily lives at a time when AI agent capabilities are being integrated into the phones and devices they already carry.
Frequently asked questions
Question: How does the Muse Wonder model differ from Meta’s previous models?
Answer: In the Muse Wonder model, Meta abandoned the open-source approach, making it a closed model with its most powerful versions sold directly to businesses and developers to compete with OpenAI and Anthropic.
Question: What are the specifications of the virtual reality glasses that Meta will release in the spring?
Answer: The glasses feature a design resembling regular glasses with a lightweight build of 3.5 ounces and a price of approximately $1,300, incorporating the Muse AI assistant to provide multiple virtual work screens.
Question: How much were the losses of Meta’s Reality Labs division?
Answer: Cumulative losses for the Reality Labs division, which is responsible for metaverse and virtual reality projects, exceeded $70 billion since early 2021, prompting the company to cut its budget by 30 percent.
Question: What is Meta’s expected spending volume on data centers?
Answer: Meta projected spending at least $600 billion on building and equipping AI data centers through the end of 2028.
