Posts tagged with "Meta"

Report: Amazon, Tesla, and Meta are among world’s top companies undermining democracy

September 23, 2024

Some of the world’s largest companies have been accused of undermining democracy by financially backing far-right political movements, funding and exacerbating the climate crisis, and violating trade union rights and human rights in a report published on Monday, September 23, by the International Trade Union Confederation (ITUC).

Indeed, as reported by The Guardian, Amazon, Tesla, Meta, ExxonMobil, Blackstone, Vanguard, and Glencore are the corporations included in the report.

The companies’ lobbying arms are attempting to shape global policy at the United Nations Summit of the Future in New York City on September 22 and 23.

At Amazon, the report notes that the company’s size and role as the fifth largest employer in the world—and the largest online retailer and cloud computing service—has had a profound impact on the industries and communities it operates within.

“The company has become notorious for its union busting and low wages on multiple continents, monopoly in e-commerce, egregious carbon emissions through its AWS data centers, corporate tax evasion, and lobbying at national and international level,” states the report.

The report cites Amazon’s high injury rates in the United States, the company challenging the constitutionality of the National Labor Relations Board (NLRB), its efforts in Canada to overturn labor law, the banning of Amazon lobbyists from the European parliament for refusing to attend hearings on worker violations, and its refusal to negotiate with unions in Germany, among other cases.

Amazon also has funded far-right political groups’ efforts to undermine women’s rights and antitrust legislation, and its retail website has been used by hate groups to raise money and sell products.

At Tesla, the report cites anti-union opposition by the company in the United States, Germany, and Sweden; human rights violations within its supply chains; and Elon Musk’s personal opposition to unions and democracy, challenges to the NLRB in America, and his support for the political leaders Donald Trump, Javier Milei in Argentina and Narendra Modi in India.\

The report cites Meta, the largest social media company in the world, for its vast role in permitting and enabling far-right propaganda and movements to use its platforms to grow members and garner support in the United States and abroad. It also cited retaliation from the company for regulatory measures in Canada, and expensive lobbying efforts against laws to regulate data privacy.

Glencore, the largest mining company in the world by revenue, was included in the report for its role in financing campaigns globally against indigenous communities and activists.

Blackstone, the private equity firm led by Stephen Schwarzman, a billionaire backer of Donald Trump, was cited in the report for its roles in funding far-right political movements, investments in fossil fuel projects, and deforestation in the Amazon.

“Blackstone’s network has spent tens of millions of dollars supporting politicians and political forces who promise to prevent or eliminate regulations that might hold it to account,” the report noted.

The Vanguard Group was included in the report due to its role in financing some of the world’s most anti-democratic corporations. ExxonMobil was cited for funding anti-climate science research and aggressive lobbying against environmental regulations.

Even in “robust democracies” workers’ demands “are overwhelmed by corporate lobbying operations, either in policymaking or the election in itself”, says Todd Brogan, director of campaigns and organizing at the ITUC.

“This is about power, who has it, and who sets the agenda. We know as trade unionists that, unless we’re organized, the boss sets the agenda in the workplace; and we know as citizens in our countries that unless we’re organized and demanding responsive governments that actually meet the needs of people, it’s corporate power that’s going to set the agenda.

“They’re playing the long game, and it’s a game about shifting power away from democracy at every level into one where they’re not concerned about the effects on workers; they’re concerned about maximizing their influence and their extractive power and their profit,” adds Brogan. “Now is the time for international and multi-sectoral strategies, because these are, in many cases, multinational corporations that are more powerful than states, and they have no democratic accountability whatsoever, except for workers organized.”

Research contact: @guardian

The New York Times sues OpenAI and Microsoft for ‘training’ their AI using its articles

December 28, 2023

The New York Times has sued Microsoft and OpenAI for using its content to help develop artificial intelligence services, in a sign of the increasingly fraught relationship between the media and a technology that could upend the news industry, reports Fortune Magazine.

The technology firms relied on millions of copyrighted articles to “train” chatbots like ChatGPT and other AI features—allegedly causing billions of dollars in statutory and actual damages, according to a lawsuit filed in New York City on Wednesday, December 27. The Times didn’t specify its monetary demands.

Representatives from Microsoft and OpenAI didn’t immediately respond to requests for comment.

OpenAI has faced criticism for scraping text widely from the web to develop its popular chatbot since it debuted a year ago, and this is the first lawsuit by a major media organization challenging the practice. The startup has sought licensing deals with publishers, much like Alphabet Inc.’s Google and Meta Platforms’ Facebook have done in recent years.

In July, OpenAI signed an agreement with the Associated Press to access some of the news agency’s archives. OpenAI cut a three-year deal in December with Axel Springer SE to use the German media company’s work for an undisclosed sum.

The Times lawsuit said the publisher reached out to Microsoft and OpenAI in April and could not reach an amicable solution.

OpenAI has faced multiple lawsuits from content producers complaining that their work has been improperly used for AI training. The company faces class actions from cultural figures—including comedian Sarah Silverman, Game of Thrones author George R.R. Martin, and Pulitzer-winning author Michael Chabon.

The cases are still in their early stages and could take years to fully resolve. A judge in San Francisco earlier this month hinted at trimming Silverman’s copyright lawsuit against OpenAI. The judge had already narrowed a similar Silverman suit against Meta.

OpenAI is currently in talks with investors for new financing at a $100 billion valuation that would make it the second-most-valuable U.S. startup, Bloomberg News reported last week.

Microsoft is OpenAI’s largest backer and has deployed the startup’s AI tools in several of its products. In the lawsuit, The New York Times alleged that Microsoft copied the newspaper’s articles verbatim for its Bing search engine and used OpenAI’s tech to boost its value by a trillion dollars.

“If Microsoft and OpenAI want to use our work for commercial purposes, the law requires that they first obtain our permission,” a New York Times spokesperson said in an emailed statement on Wednesday. “They have not done so.”

Research contact: @FortuneMagazine

Facebook, Instagram will allow political ads that claim the 2020 election was stolen

November 17, 2023

Meta will allow political ads on its platforms to question the outcome of the 2020 U.S. presidential election—part of a rollback in election-related content moderation among major social media platforms over the past year ahead of the 2024 U.S. presidential contest, reports CNN.

The policy means that Metathe parent company of Facebook and Instagramwill be able to directly profit from political ads that boost false claims about the legitimacy of the 2020 election. While the company will allow political advertisements to claim that past elections, including the 2020 presidential race, were rigged, it will prohibit those that “call into question the legitimacy of an upcoming or ongoing election.”

The change is part of a year-old policy update but has not been widely reported. The Wall Street Journal reported that Meta’s ads policy had changed on Wednesday, November 15.

Meta says the policy allowing 2020 election denialism in political ads was part of an August 2022 announcement about its approach to last year’s midterm elections, when the company said it would prohibit ads targeting users in the United States, Brazil, Israel, and Italy that discourage people from voting, call into question the legitimacy of an upcoming or ongoing election, or prematurely claim an election victory.

That same month, Meta told The Washington Post that it would not remove posts from political candidates or regular users that claim voter fraud or that the 2020 election was rigged.

Meta’s broader electoral misinformation policy continues to prohibit content that could interfere with people’s ability to participate in voting or the census, such as false claims about the timing of an election, according to the company.

“We wish we could say we were surprised Meta is choosing to profit off of election denialism, but it seems to be a feature of theirs, not a bug,” TJ Ducklo, a representative for the Biden campaign, told CNN in a statement about Meta’s ad policy. “They amplified the lies behind the ‘stop the steal’ movement. Now they’re coming for its cash. Joe Biden won the election in 2020 clearly, unequivocally, and fairly—no matter what Meta choose to promote.”

Meta did not immediately respond to a request for comment on the Biden campaign’s statement.

Seprately, Meta said earlier this month that it would require political advertisers around the world to disclose any use of artificial intelligence in their ads, starting next year, as part of a broader move to limit “deepfakes” and other digitally altered misleading content.

The company also said it would prohibit political advertisers from using the its new artificial intelligence tools, which help brands generate text, backgrounds, and other marketing content.

Research contact: @CNN

Biden signs sweeping executive order regulating AI

November 1, 2023

President Joe Biden is directing the U.S. government to take a sweeping approach to artificial intelligence (AI) regulation—his most significant action yet to rein in an emerging technology that has sparked both concern and acclaim, reports Crain’s New York Business.

The lengthy executive order—released on Monday, October 30—sets new standards on security and privacy protections for AI, with far-reaching impacts on companies. Developers such as Microsoft, Amazon, and Google will be directed to put powerful AI models through safety tests and submit results to the government before their public release.

The rule, which leverages the U.S. government’s position as a top customer for big tech companies, is designed to vet technology with potential national or economic security risks, along with health and safety. It will likely only apply to future systems—not those already on the market—a senior administration official said.

The initiative also creates infrastructure for watermarking standards for AI-generated content, such as audio or images, often referred to as “deepfakes.” The Commerce Department is being asked to help with the development of measures to counter public confusion about authentic content.

The administration’s action builds on voluntary commitments to securely deploy AI adopted by more than a dozen companies over the summer at the White House’s request; and its blueprint for an “AI Bill of Rights,” is a guide for safe development and use.

All 15 companies that signed on to those commitments, including Adobe and Salesforce, will join the president at a signing ceremony at the White House on Monday, along with members of Congress.

Biden’s directive precedes a trip by Vice President Kamala Harris and industry leaders to attend a U.K.-hosted summit about AI risks—giving her a U.S. plan to present on the world stage.

The United States set aside $1.6 billion in fiscal 2023 for AI—a number that’s expected to increase as the military releases more detail about its spending, according to Bloomberg Government data.

“This executive order sends a critical message: … AI used by the United States government will be responsible AI,” International Business Machines Corp. Chairman and Chief Executive Officer Arvind Krishna said in a statement.

Biden also called for guidance to be issued that safeguards Americans from algorithmic bias in housing, in government benefits programs, and by federal contractors.

The Justice Department warned in a January filing that companies that sell algorithms to screen potential tenants are liable under the Fair Housing Act if they discriminate against Black applicants. Biden directed the department to establish best practices for investigating and prosecuting such civil-rights violations related to AI, including in the criminal justice system.

The order also asks immigration officials to lessen visa requirements for overseas talent seeking to work at American AI companies.

While the administration is touting its latest actions as the government’s most robust advancement of AI regulation, Congress may go further.

Biden has called on lawmakers to pass privacy legislation, though he doesn’t yet have a position on how Congress should approach comprehensive regulation of AI, the administration official said.

Senate Majority Leader Chuck Schumer called for America to spend at least $32 billion in the coming years to boost AI research and development.

Lawmakers have been holding briefings and meeting with tech representatives, including Meta Platforms’ Mark Zuckerberg and OpenAI’s Sam Altman, to better understand the technology before drafting legislation.

Research contact: @crainsny

Headspace is partnering with Oura

Octrober 11, 2023

Over the years, Headspace has transformed from purely a meditation app to a platform that has become synonymous with empowering the value of mental health well-being. Now, the company wants to get even more up-close and personal, reports Forbes.

On Tuesday, October 10, at HLTH 2023—a meeting focused on health information and transformation, held in Las Vegas, October 8-11—the company announced that it will be partnering with Oura, the developer of the “smart ring” health and activity tracker, to further Headspace’s mission to revolutionize mental health wellness.

Oura’s smart ring provides a robust user experience—helping track sleep metrics, oxygen saturation, heart rate, and numerous other advanced functional metrics.

Concurrent with the Headspace announcement, Oura stated that it would be launching its “Daytime Stress” feature, which will help users identify specific stress triggers via constant monitoring of changes in heart rate and temperature by the ring. With more frequent capturing of this information, users can more closely find out what triggers their anxiety to help better manage and mitigate sources of stress.

This is where Headspace steps in. After being alerted to a high stress situation, Oura users will now be able to access stress-focused Headspace content such as guided meditations, breathing exercises, and muscle relaxation techniques. This will provide users with tactical measures to counteract stress and enable actual, tangible ways to overcome the specific trigger.

Russell Glass, CEO of Headspace, explains that Headspace’s mission is to provide every single person with access to comprehensive mental health wellness services. He also explains that the company is incredibly mindful about how it creates content for users: “Headspace’s approach to creating great content is to think really deeply about the user experience. We realize that great content leads to great engagement, and great engagement leads to great outcomes.” This vision to ultimately drive better mental health outcomes is the company’s primary goal, Glass says.

Through the partnership with Oura, Headspace is trying to empower users with real-time, actionable insights and methods by which they can better manage their mental health.

What’s more, the company announced last month that it would soon be partnering with Meta to launch its content on the Quest 3 virtual reality headset as yet another means by which patients can access the platform.

Research contact: @Forbes

Tom Hanks warns of dental ad using A.I. version of him

October 6, 2023

Actor Tom Hanks and Gayle King, a co-host of “CBS Mornings,” have separately warned their followers on social media that videos using artificial intelligence likenesses of them were being used for fraudulent advertisements, reports The New York Times.

“People keep sending me this video and asking about this product and I have NOTHING to do with this company,” King wrote on Instagram on Monday, October 2—attaching a video that she said had been manipulated from a legitimate post promoting her radio show on August 31.

The doctored footage, which she shared with the words “Fake Video” stamped across it, showed King saying that her direct messages were “overflowing” and that people should “follow the link” to learn more about her weight loss “secret.”

“I’ve never heard of this product or used it!” she wrote. “Please don’t be fooled by these AI videos.”

It was not immediately clear what weight-loss product the ad was promoting or what company was behind it.

Hanks issued a similar warning on Saturday, September 30— saying that an advertisement for a dental plan using his likeness without his consent was fraudulent and based on an artificial intelligence version of him.

“Beware!!” he wrote on Instagram over a screen shot of the apparent ad. “There’s a video out there promoting some dental plan with an AI version of me. I have nothing to do with it.”

It was unclear what company had used Hanks’s likeness or what products it was promoting. Hanks did not tag the company or mention it by name. There was no evidence of the video anywhere on social media.

Representatives for Hanks declined to respond on Monday to questions about the ad—including whether he planned to take legal action or if he had requested that the ad be removed from social media.

In an email, a spokesman for Meta, Instagram’s parent company, did not comment directly on the ads but said that it was “against our policies to run ads that use public figures in a deceptive nature in order to try to scam people out of money.”

“We have put substantial resources towards tackling these kinds of ads and have improved our enforcement significantly, including suspending and deleting accounts, pages, and ads that violate our policies,” the spokesperson said.

Christa Robinson, a spokesperson for CBS News, said in an email that King learned about the video featuring her likeness when friends called her attention to it. “Representatives on her behalf have requested the fake video be taken down several times,” Robinson said.

The use of A.I. was one of many sticking points during the monthslong Writers Guild of America strike, which ended late last month.

Lawyers for the entertainment companies came up with language that addressed guild concerns about A.I. and old scripts that studios own. Similarly, SAG-AFTRA, the union representing Hollywood actors that has been striking since July 14, also is concerned about A.I. It worries that the technology could be used to create digital replicas of actors without payment or approval.

Hanks spoke about the use of A.I. at length earlier this year, just days before the Hollywood writers’ strike began. He said on “The Adam Buxton Podcast” that he first used similar technology on the film “Polar Express,” which was released in 2004.

“We saw this coming,” he said. “We saw that there was going to be this ability in order to take zeros and ones inside a computer and turn it into a face and a character. Now that has only grown a billion-fold since then, and we see it everywhere.”

Hanks said the guilds, agencies, and law firms all were discussing the legal ramifications around an actor claiming his or her face and voice as intellectual property.

He mused that he could pitch a series of movies starring him at 32 years old. “Anybody can now recreate themselves at any age they are by way of A.I. or deep-fake technology,” he said.

“I could be hit by a bus tomorrow, and that’s it, but performances can go on,” he said. “And outside of the understanding that it’s been done with A.I. or deep-fake, there’ll be nothing to tell you that it’s not me and me alone. And it’s going to have some degree of lifelike quality. That’s certainly an artistic challenge, but it’s also a legal one.”

As A.I. begins to take root in various forms, and as companies begin experimenting with it, there are concerns about how confidential data might be handled, the accuracy of A.I.-generated answers, and how the technology could be harnessed by criminals.

For now, there are more questions than answers. Policy experts and lawmakers signaled this summer that the United States was at the start of what will very likely be a long and difficult road toward the creation of rules regulating A.I.

Research contact: @nytimes

Mark Zuckerberg shuts door on cage fight, saying Elon Musk ‘isn’t serious’

August 15, 2023

Mark Zuckerberg has said he is moving on from a rumored cage fight with Elon Musk, claiming the Tesla boss “isn’t serious,” reports The Guardian.

The rival billionaire tech bosses seemingly agreed to a brawl in June when Musk tweeted that he was “up for a cage fight.”

Zuckerberg, who manages Facebook and Instagram, took a screenshot of Musk’s tweet, replying “send me location.” However, on Sunday he said on his other social media platform, Threads: “I think we can all agree Elon isn’t serious and it’s time to move on.

“I offered a real date. Dana White (Ultimate Fighting Championship boss) offered to make this a legit competition for charity. Elon won’t confirm a date; then says he needs surgery, and now asks to do a practice round in my backyard instead.

“If Elon ever gets serious about a real date and official event, he knows how to reach me. Otherwise, time to move on. I’m going to focus on competing with people who take the sport seriously.”

Musk, the owner of Twitter which he has renamed X, appeared to suggest the fight would be held in an “epic location” in Italy. He outlined streaming options and an ancient setting for the proposed event, claiming he had spoken to the Italian Prime Minister Giorgia Meloni.

Tensions have been high between the two tech billionaires’ companies after the launch of Threads, a text-based conversation app, by Zuckerberg’s Meta in July.

Twitter sent a cease-and-desist letter to Zuckerberg after the launch—claiming Meta had made “unlawful misappropriation of Twitter’s trade secrets and other intellectual property”.

Zuckerberg is trained in mixed martial arts, posting about completing his first jiu jitsu tournament earlier this year.

Musk said last week he was training for the fight by lifting weights. He wrote on X: “Don’t have time to work out, so I just bring them to work.”

Research contact: @guardian

Meta to join the conversation—launching Threads app to rival troubled Twitter

July 5, 2023

Meta, the owner of Facebook and Instagram, is set to launch a new “conversation app” called Threads on Thursday, July 6. It is expected to compete directly with Twitter, reports NBC News.

The launch comes after a chaotic weekend, during which Twitter CEO Elon Musk announced a limit to the number of tweets users can view in one day.

A newly-launched website shows a countdown to Thursday’s launch and a listing on the Apple App Store describes Threads as “Instagram’s text-based conversation app.”

“Threads is where communities come together to discuss everything from the topics you care about today to what’ll be trending tomorrow,” the app listing said.

“Whatever it is you’re interested in, you can follow and connect directly with your favorite creators and others who love the same things—or build a loyal following of your own to share your ideas, opinions and creativity with the world.”

The screengrab images show a text-based platform apparently similar to Twitter. The images also suggest users will be able to keep their Instagram username on the app. IPhone users will need to install iOS 14 or later to use it.

A spokesman for Meta declined to comment.

Twitter co-founder Jack Dorsey tweeted a picture of the data Threads will require users to share, to which Musk simply replied: “Yeah.”

Twitter users have been dismayed by the tweet-viewing limits. On Saturday, Musk said unverified users would only be able to read 600 tweets a day, which he then revised upwards to 1,000.

Verified users, who have paid up to $11 a month for access to the Twitter Blue subscription service, can see up to 10,000 posts a day.

Musk said the move was to deter “extreme levels of data scraping,” the automated collection of large amounts of data.

Twitter now charges as much as $5,000 per month for startups; and at least $42,000 a month for businesses and scaled commercial projects for access to its API, which allows developers to make products using tweets and was previously free.

Next month, Twitter will also make Tweetdeck—a web application with advanced search and posting functions—available to Twitter Blue subscribers only. Users must buy a subscription within 30 days to continue to use it.

Tweetdeck was built by a London-based entrepreneur using the open API, before the service was purchased by Twitter in 2011 for an estimated $40 million.

The choice of name for Meta’s new app is a significant nod to its main rival. A thread, or a linked series of tweets, has become one of the key features of Twitter since it was introduced as an official feature in 2017.

Since it launched in 2006 as one of several “microblogging” services in the social media explosion of the web 2.0 era, Twitter has become a standard part of daily life for many. Governments, businesses, sports teams, think tanks, journalists, and many other organizations use Twitter to communicate with audiences—giving it huge importance globally, even though its daily users are far fewer than those on Instagram and Facebook.

Research contact: @NBCNews

Yahoo takes minority stake in digital ad network Taboola

November 29, 2022

Yahoo is deepening its push into digital advertising, even as its competitors warn that the market is faltering, reports The New York Times.

The Internet pioneer, which was taken private in a $5 billion deal last year, is taking a roughly 25% stake in Taboola, the company known for serving up attention-grabbing links on websites, the chief executives of the companies said in an interview.

The deal is part of a 30-year exclusive advertising partnership that allows Yahoo to use Taboola’s technology to manage its sizable business in native advertising—ads that have the characteristics of traditional news and entertainment content.

Shares of Taboola have fallen nearly 80% over the past year, amid broader doldrums in the public and advertising markets—giving it a market capitalization of $455 million. Last January, when Taboola struck a deal to merge with a special purpose acquisition company, or SPAC, it was valued at $2.6 billion.

Executives at companies like Meta and TikTok have warned that advertisers skittish about the economy have pulled back on their spending. But Jim Lanzone, the chief executive of Yahoo, said in an interview that the deal with Taboola puts both companies in a good position for when the ad market revives.

“I’m thinking, you know, five, ten, 30 years,” Lanzone said. “Digital advertising has huge wind at its back over the long term.” He added that while the company will continue to try to bring in money in other ways, such as expanding its subscription business or investing in e-commerce, “we have hundreds of millions of people consuming news and sports and finance on market-leading properties that are heavily monetized through advertising — and will continue to be.”

Yahoo, a giant of the early internet, was eclipsed over the years by tech rivals like Alphabet’s Google and Meta’s Facebook. The company endured a messy power struggle and shaky leadership as it matured, leading to layoffs and shifts in strategy.

The company was taken private by the investment firm Apollo Global Management in the hopes that new leadership and a respite from the public markets would give it a chance to grow. Yahoo says it has about 900 million monthly users of its properties, which include AOL, TechCrunch, and Yahoo Sports, making it one of the largest destinations on the web.

oola, founded in 2007, specializes in native advertising, operating a sprawling advertising network over thousands of well-known websites, including CNBC, NBC News, and Insider.

The deal with Yahoo gives Taboola the exclusive license to sell native ads across Yahoo’s sites, and the companies will share revenue from those ad sales. The companies did not disclose the terms of the revenue split.

Yahoo, which will become Taboola’s largest shareholder, also will get a seat on the company’s board.

Research contact: @nytimes

Facebook parent Meta will notify employees of large-scale layoffs, starting this week

November 9, 2022

Meta Platforms is planning to begin large-scale layoffs this week, according to people familiar with the matter, in what could be the largest round in a recent spate of tech job cuts after the industry’s rapid growth during the pandemic, reports The Wall Street Journal.

The layoffs are expected to affect many thousands of employees and an announcement is planned to come as soon as Wednesday, November 9. Meta reported more than 87,000 employees at the end of September. Company officials already told employees to cancel nonessential travel beginning this week, insiders said.

The planned layoffs would be the first broad head-count reductions to occur in the company’s 18-year history. While smaller on a percentage basis than the cuts at Twitter this past week—which hit about half of that company’s staff—the number of Meta employees expected to lose their jobs could be the largest to date at a major technology corporation in a year that has seen a tech-industry retrenchment.

A spokesman for Meta declined to comment, referring to CEO Mark Zuckerberg’s recent statement that the company would “focus our investments on a small number of high-priority growth areas.

“So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” he said on the company’s third-quarter earnings call on October. 26. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”

The Wall Street Journal reported in September that Meta was planning to cut expenses by at least 10% in the coming months, in part through staff reductions.

The cuts expected to be announced this week follow several months of more targeted staffing reductions in which employees were managed out or saw their roles eliminated.

“Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg told employees at a companywide meeting at the end of June. 

Meta, like other tech giants, went on a hiring spree during the pandemic as life and business shifted more online. It added more than 27,000 employees in 2020 and 2021 combined; and added a further 15,344 in the first nine months of this year—about one-fourth of that during the most recent quarter.

Meta’s stock has fallen more than 70% this year. The company has highlighted deteriorating macroeconomic trends, but investors also have been spooked by its spending and threats to the company’s core social-media business. Growth for that business in many markets has stalled amid stiff competition from TikTok; and Apple’s requirement that users opt in to the tracking of their devices has curtailed the ability of social-media platforms to target ads.

Last month, investment firm Altimeter Capital said in an open letter to Zuckerberg that Meta should slash staff and pare back its metaverse ambitions, reflecting the rising discontent among shareholders.

Much of Meta’s ballooning costs stem from Zuckerberg’s commitment to Reality Labs; a division of the company responsible for virtual- and augmented-reality headsets, as well as the creation of the metaverse. Zuckerberg has billed the metaverse as a constellation of interlocking virtual worlds in which people will eventually work, play, live, and shop.

The effort has cost the company $15 billion since the beginning of last year. But despite investing heavily in promoting its virtual-reality platform, Horizon Worlds, users have been largely unimpressed. Last month, the Journal reported that visitors to Horizon Worlds had fallen over the course of the year to well under 200,000 users, about the size of Sioux Falls, South Dakota.

“I get that a lot of people might disagree with this investment,” Zuckerberg told analysts on the company’s earnings call last month before reaffirming his commitment. “I think people are going to look back on decades from now and talk about the importance of the work that was done here.”

Research contact: @WSJ