Meta Shifts to AI Devices From Metaverse - bloomberg-technology Recap

Podcast: bloomberg-technology

Published: 2026-01-13

Duration: 44 minutes

Guests: Hemma Palmer, Alexandra Mousavizadeh, Pete Hegseth, Sebastian Siemiatkowski

Summary

Meta is pivoting from the metaverse to AI-powered devices, ramping up production of Ray-Ban AI glasses. Meanwhile, Microsoft addresses data center energy costs, and Klarna's CEO supports a proposed interest rate cap on credit cards.

What Happened

Meta is doubling down on AI, shifting focus from the metaverse to AI-powered devices. The company plans to increase production capacity for its Ray-Ban smart glasses, developed in partnership with EssilorLuxottica, from 10 million to potentially 30 million units, depending on demand. This move signifies a strategic pivot as Meta aims to capitalize on the rapidly advancing AI sector.

Microsoft has announced a five-point plan to address concerns over energy costs related to its data centers. The plan includes paying for any power price increases these centers might cause, aiming to alleviate consumer anxiety about rising electricity rates. This proactive approach reflects Microsoft's commitment to sustainable growth while managing operational expenses.

Klarna CEO Sebastian Siemiatkowski voiced support for President Trump's proposal to cap credit card interest rates at 10% for one year. Siemiatkowski believes this would level the financial playing field, reduce consumer costs, and align with Klarna's business model of offering buy now, pay later services with lower interest rates than traditional credit cards.

In the tech sector, hedge funds experienced a remarkable year, with an average gain of 10.6%, the best since 2009. Tech-focused funds like Whale Walk and Light Street saw significant recoveries, particularly after a challenging period between 2022 and 2023. Meanwhile, Bridgewater's macro strategy excelled, and D.E. Shaw's multi-strategy fund achieved over 20% gains.

JP Morgan continues to lead in AI deployment among banks, maintaining its top position for three and a half years. The bank's significant investment in AI is expected to yield full returns on investment within the next three to four years, showcasing the transformative potential of AI in financial services.

The episode also touches on the integration of Elon Musk's Grok platform into the U.S. Defense Department systems. Defense Secretary Pete Hegseth praised Musk's innovative approach, emphasizing the platform's potential to enhance defense technology capabilities.

In other news, a potential US-Taiwan trade deal could lower tariffs on goods from Taiwan and increase TSMC's investment in U.S. chip production. This deal might provoke China and impact the trade of rare earth minerals, which are vital for electronics and military hardware.

Key Insights

• Meta plans to increase production capacity for its AI-powered Ray-Ban smart glasses from 10 million to potentially 30 million units, reflecting a strategic shift from the metaverse to AI devices.
• Microsoft's five-point plan to manage energy costs includes covering any power price increases caused by its data centers, aiming to mitigate consumer concerns about rising electricity rates.
• Hedge funds in the tech sector achieved an average gain of 10.6% in the past year, marking the best performance since 2009, with funds like Whale Walk and Light Street seeing significant recoveries.
• JP Morgan has maintained its leading position in AI deployment among banks for three and a half years, with expectations of full returns on its AI investments within the next three to four years.