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華爾街日報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
Economist Dean Baker criticized Meta Platforms Inc. (NASDAQ:META) 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.
Zuckerberg Threw $77 Billion
In his newsletter on Monday titled “Did Mark Zuckerberg Throw $77 Billion of Our Money into the Toilet?” Baker said that while Meta's Metaverse ambitions could be viewed as “just a mistaken investment decision, of the sort companies make all the time,” the scale of the spending made it far more consequential.
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.
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“The 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,” he said.
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.
Baker, who co-founded the Center for Economic and Policy Research, added that these same resources “could have otherwise been productively employed,” suggesting even the construction materials used for Meta's expansion could have instead supported “affordable housing in the expensive Bay Area.”
Baker said the failed Metaverse bet becomes especially relevant as major technology firms now pour hundreds of billions of dollars into artificial intelligence.
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.
The central question, Baker concluded, is whether Zuckerberg has become a more disciplined steward of capital since the Metaverse era. “We are likely to learn the answer in 2026.”
Meta did not immediately respond to Benzinga’s request for a comment on this. The story will be updated as soon as we receive a response.
Meta Scales Back Metaverse Budget
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.
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.
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’s Edge Stock Rankings, but does poorly on Value, with a favorable price trend in the short run. Click here for deeper insights into the stock, its peers and competitors.
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