What question did this study set out to answer?

To evaluate Meta's strategic decision-making, platform dependency risks, and capital allocation as the company pivoted from metaverse investments to artificial intelligence.

August 15, 2026Journal of Information Technology Teaching Cases

Meta at the crossroads: from the metaverse bet to the A.I. pivot

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Authors

SGSameek GhoshUttarakhand Technical University CKChaitanya KommanapalliWoxsen School of Business PKPoojitha KondapakaWoxsen School of Business

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Implication

Case study examines strategic trade-offs and capital reallocation in Meta Platforms, highlighting the transition from metaverse development to artificial intelligence infrastructure.

Key Points

To evaluate Meta's strategic decision-making, platform dependency risks, and capital allocation as the company pivoted from metaverse investments to artificial intelligence.
Strategic case analysis examining Meta's advertising business model, operating structure, and platform ecosystem constraints through March 2026.
Evaluation of capital expenditure trends, Reality Labs financial performance, and emerging infrastructure investments in artificial intelligence and augmented reality.
Reality Labs accumulated cumulative operating losses exceeding $80 billion by early 2026, accompanied by scaled-back virtual reality deployments such as Horizon Worlds.
Capital allocation and organizational focus shifted toward large-scale artificial intelligence models and supporting data-center infrastructure.

Cite This Study

Ghosh et al. (2026) studied this question.

synapsesocial.com/papers/6a8019ce75c2e31742c85fe7 https://doi.org/10.1177/20438869261477112

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Implication

Case study examines strategic trade-offs and capital reallocation in Meta Platforms, highlighting the transition from metaverse development to artificial intelligence infrastructure.

Meta at the crossroads: from the metaverse bet to the A.I. pivot

Discussion

Member takes

Implication

Key Points

Cite This Study

Meta at the crossroads: from the metaverse bet to the A.I. pivot

Discussion

Member takes

Implication

Key Points

Cite This Study

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