By Jennifer Matthews
- Meta is shutting down the flagship of its metaverse vision after Reality Labs burned through nearly $80B since 2020
- The pivot from virtual worlds to AI raises the question of who gets left holding the bag when Silicon Valley changes the story
Five years ago, Mark Zuckerberg renamed his company for a future he has now left behind. Meta has confirmed it will shut down Horizon Worlds on Quest headsets, which was once the heart of its metaverse plans. Reality Labs lost nearly $80 billion since 2020, including $24.1 billion in 2025. The platform never reached 200,000 monthly users. Now, Meta is turning to AI, planning to spend up to $135 billion on AI infrastructure in 2026.
Why This Matters: The metaverse was the big focus in 2021, now, it’s all about AI. I’ve been involved in the NFT and Web3 space since 2021, and I saw this story unfold in real time. Black founders, creators, and developers were told that decentralized platforms would open new doors to ownership. HBCUs tried out metaverse projects. Black artists created and sold work, built in Decentraland, and bought land in virtual worlds that Silicon Valley has now quietly abandoned.
This pattern is familiar to anyone who saw FTX collapse, leaving regular investors with losses while insiders got out early. When the story changes overnight, those who joined last, often people like us, are left holding tokens for a world with no future. Ownership doesn’t mean much if the platform owner can just shut it down and move the money elsewhere.
What’s Next: The real question is whether AI is easier to access than the metaverse ever was. One could argue it could be, since the tools cost less than a headset or a piece of virtual land, and Black creators already lead the way in cultural trends. However, having access isn’t the same as having equity.
The lesson from losing $80 billion isn’t to chase the next big thing. Instead, protect your data, your intellectual property, and your work, no matter what Silicon Valley is promoting this time. Focus on what lasts after the hype fades.
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