Techub News reports that, according to CryptoBriefing, Meta's Reality Labs division announced a loss of $4 billion in the first quarter of 2026, highlighting its financial pressure in VR/AR business. This result comes as Meta adjusts its AI strategy, shifting from open source to the upcoming closed-source "Avocado" model. The division has long borne the main losses from Meta's metaverse investments, but the company still plans to maintain high AI infrastructure spending. Currently, with intensified US-China AI competition, Chinese labs are advancing open-source models at lower costs, challenging Meta's technological lead and also affecting market expectations for its short-term stock performance.

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