{"id":210311,"date":"2025-12-31T17:31:10","date_gmt":"2025-12-31T17:31:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/210311\/"},"modified":"2025-12-31T17:31:10","modified_gmt":"2025-12-31T17:31:10","slug":"asks-if-he-is-set-to-waste-billions-more-on-ai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/210311\/","title":{"rendered":"Asks If He Is Set To Waste Billions More On AI"},"content":{"rendered":"\n

Economist Dean Baker criticized Meta Platforms Inc. (NASDAQ:<\/a>META<\/a>) CEO Mark Zuckerberg’s massive bet on the Metaverse, arguing the roughly $77 billion spent on the project represents not just a corporate loss, but a broader economic failure that carries real social costs.<\/p>\n

In his newsletter on Monday titled \u201cDid Mark Zuckerberg Throw $77 Billion of Our Money into the Toilet?\u201d Baker said that while Meta’s Metaverse ambitions could be viewed as \u201cjust a mistaken investment decision, of the sort companies make all the time,\u201d the scale of the spending made it far more consequential.<\/p>\n

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He said that when Zuckerberg invested $77 billion into Meta’s virtual reality push, he effectively diverted scarce talent and physical resources away from more productive uses.<\/p>\n

\u201cThe flip side to this story is that when companies make stupid investment decisions, as it seems Zuckerberg did with the $77 billion he threw into Meta, it is not just a loss on their books, but also a cost to society,\u201d he said.<\/p>\n

He noted that software engineers, planners and support staff were tied up in the project for years, alongside physical inputs such as office space, computing equipment and large amounts of electricity.<\/p>\n

Baker, who co-founded the Center for Economic and Policy Research, added that these same resources \u201ccould have otherwise been productively employed,\u201d suggesting even the construction materials used for Meta’s expansion could have instead supported \u201caffordable housing in the expensive Bay Area.\u201d<\/p>\n

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Baker said the failed Metaverse bet becomes especially relevant as major technology firms now pour hundreds of billions of dollars into artificial intelligence.<\/p>\n

He warned that the AI investment boom is already reshaping the economy, fueling growth by absorbing top engineering talent while simultaneously placing heavy strain on power grids and complicating climate goals.<\/p>\n

The central question, Baker concluded, is whether Zuckerberg has become a more disciplined steward of capital since the Metaverse era. \u201cWe are likely to learn the answer in 2026.\u201d<\/p>\n

Meta did not immediately respond to Benzinga\u2019s<\/a> request for a comment on this. The story will be updated as soon as we receive a response.<\/p>\n

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Earlier this month, Meta announced that it was cutting its 2026 Metaverse budget by up to 30%, which, according to analyst estimates, accounts for 50% to 60% of its Reality Labs division spending, which has racked up $70 billion in cumulative losses since 2021.<\/p>\n

The company is also facing growing criticism for its growing AI investments, which are set to touch $100 billion in 2026, and require significant external financing, according to CFO Susan Li.<\/p>\n

Meta shares were down 0.69% on Monday, closing at $658.69, and down 0.24% overnight. The stock scores high on Quality in Benzinga\u2019s Edge Stock Rankings, but does poorly on Value, with a favorable price trend in the short run. Click here<\/a> for deeper insights into the stock, its peers and competitors.<\/p>\n

Read Next: Have $100k+ to invest? Charlie Munger says that’s the toughest milestone \u2014 don’t stall now. Get matched with a fiduciary advisor and keep building<\/a><\/p>\n

Photo courtesy: Frederic Legrand \u2013 COMEO \/ Shutterstock.com<\/p>\n

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Get the latest stock analysis from Benzinga:<\/p>\n

This article Mark Zuckerberg Threw $77 Billion ‘Into The Toilet’ On Metaverse, Says Economist Dean Baker: Asks If He Is Set To Waste Billions More On AI<\/a> originally appeared on Benzinga.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Economist Dean Baker criticized Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg’s massive bet on the Metaverse, arguing the…\n","protected":false},"author":2,"featured_media":210312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,127978,3914,897,109151,111,139,69,145],"class_list":{"0":"post-210311","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-dean-baker","12":"tag-economist","13":"tag-mark-zuckerberg","14":"tag-metaverse","15":"tag-new-zealand","16":"tag-newzealand","17":"tag-nz","18":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/210311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=210311"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/210311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/210312"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=210311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=210311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=210311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}