Key Takeaways:
- Meta is closing its AR studio, Meta Spark, to focus on AI and the metaverse.
- AI and immersive experiences are now central to Meta’s growth strategy.
- Third-party AR creators will need to find alternative platforms.
- Meta plans significant investment in AI infrastructure.
- The shift highlights challenges in monetizing AR and VR.
Meta Platforms Inc. has announced the closure of its Meta Spark augmented reality (AR) studio as part of a strategic pivot towards artificial intelligence (AI) and the metaverse.
The studio, integral to creating digital filters and effects for Meta’s platforms—Facebook, Instagram, and Messenger—will officially close on January 14, 2025.
The decision to shutter Meta Spark reflects Meta’s broader strategy to reallocate resources toward AI and the metaverse, which CEO Mark Zuckerberg identified as crucial for the company’s growth.
This move comes in response to ongoing challenges in monetizing AR and virtual reality (VR) products, which have resulted in significant financial losses. Reports indicate that Meta’s AR and VR ventures had incurred approximately $50 billion in losses as of January 2024.
Despite the closure of Meta Spark, Meta will continue to support in-house AR effects. However, third-party AR assets created on the platform will no longer be available after the shutdown, impacting many developers who have relied on Meta Spark for custom AR projects.
These creators are now exploring alternative platforms such as Snapchat’s Lens Studio and Unity to continue their work.
Meta’s strategic shift is underscored by its significant investment in AI, with plans to allocate up to $40 billion towards infrastructure, including hardware, data centers, and servers, to support AI development.
Meta Spark is closing down. While the notice feels a bit short, it is what it is. I think this is a great opportunity to share a few words.
We started to prototype this product in 2016, with my co-founders and the MSQRD team. Over the years, we put in a tremendous amount of… pic.twitter.com/aXRXdQbVZC
— Sergey Gonchar (@the_gonchar) August 27, 2024
Zuckerberg has emphasized that artificial intelligence represents the largest investment opportunity for Meta in 2024, as the company seeks to lead in the next generation of digital interaction.
Meta acknowledged the impact of the studio’s closure on its creator community but reiterated the need to focus on “the next generation of experiences” involving new technologies like AR glasses.
This aligns with Meta’s vision of integrating AI-driven technologies into immersive digital environments. Meta’s decision highlights the broader challenges within the AR industry, where sustaining profitable business models has proven difficult.
I’ve only used it once or twice but it was incredibly well made and full of really advanced features that are super hard to do in other apps. Such a shame that this goes away, it should find a home in a different type of content creation tool.
— Ax (@rrrobb) August 27, 2024
As Meta redirects its focus, the tech industry will be closely observing how the company leverages its investments in AI and the metaverse to drive future growth.
In summary, the closure of Meta Spark marks a critical juncture in Meta’s strategy, as the company pivots towards AI and the metaverse. While the move may disrupt the AR creator community, it underscores Meta’s commitment to advancing in a rapidly evolving technological landscape.
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