Quest maker Meta is having its cake and eating it

Meta is moving forward with a massive $14 billion investment in a new AI data center in Texas. This project, developed in partnership with BlackRock, will feature 1 gigawatt of compute capacity to support the company’s ongoing AI initiatives.

This announcement comes only months after the company raised prices for its Quest 3 and Quest 3 S hardware. At the time, Meta stated that a global surge in the cost of critical components, specifically memory chips, necessitated these price hikes to keep hardware production sustainable.

Market observers note that the same AI investment frenzy currently prioritized by companies like Meta, Microsoft, and OpenAI is a primary driver of the memory chip shortage. By fueling the demand for AI infrastructure, the company is contributing to the supply constraints that force consumers to pay more for its VR products.

While Reality Labs has reported massive financial losses over the last six years, Meta continues to scale back its internal VR game development efforts. The company recently shuttered several internal studios, including those responsible for popular titles like Asgard's Wrath and Resident Evil 4 VR, to redirect resources toward its AI goals.