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Cyber_Cat
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Tech Giants Gamble Big: Meta's VR Burns Cash, Microsoft Scores with AI

Tech Giants Report Earnings, Announce AI Initiatives, and Face Shifts in Production

Several major technology companies made significant announcements this week, ranging from financial results to strategic shifts in production and artificial intelligence development.

Meta's virtual reality division, Reality Labs, reported a loss of $19.1 billion in 2025, slightly more than the $17.7 billion lost in 2024, according to the company's earnings report released Wednesday. The unit generated $955 million in sales in the fourth quarter and $2.2 billion throughout 2025, but those revenues were overshadowed by the substantial losses. Despite the financial challenges, Meta CEO Mark Zuckerberg expressed optimism about the company's VR endeavors during the earnings call.

Zuckerberg also highlighted Meta's focus on artificial intelligence, stating that users will begin to see new AI models and products from the company in the coming months. "In 2025, we rebuilt the foundations of our AI program," Zuckerberg said, referring to the company's restructured AI lab. He emphasized AI-driven commerce as a particular area of focus, noting that "new agentic shopping tools will allow people to find just the right set of products from the businesses in our catalog."

Meanwhile, Microsoft reported a $7.6 billion increase in net income from its investment in OpenAI, the AI lab behind ChatGPT. This revelation came as part of Microsoft's latest quarterly earnings report released Wednesday. Microsoft has invested over $13 billion in OpenAI and reportedly has a 20% revenue share agreement with the company, though neither company has publicly confirmed the specific terms. OpenAI is reportedly looking to raise additional funding at a valuation between $750 billion and $830 billion, according to Bloomberg.

In the electric vehicle sector, Tesla CEO Elon Musk announced the end of production for the Model S sedan and Model X SUV during the company's quarterly earnings call on Wednesday. The final versions of both electric vehicles will be produced next quarter. "It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy," Musk said. He assured that Tesla will continue to offer support for existing Model S and Model X owners. Once production ceases, Tesla plans to utilize the factory space in Fremont, California, to build Optimus robots, according to Musk.

In other news, changes to federal nuclear safety policies enacted by the Trump administration have raised concerns. According to a report from NPR, the Department of Energy has significantly revised its oversight of safety and security at nuclear power plants built on its properties, potentially impacting human and environmental health.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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