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Meta is undergoing a significant organizational shift by restructuring its Reality Labs and Metaverse divisions while placing artificial intelligence (AI) at the forefront of its strategy. This move was revealed in a memo from Meta CTO Andrew Bosworth, which Business Insider obtained. The memo outlines a leadership transition where Vishal Shah, who has been leading the Metaverse efforts for the past four years, will now head AI Products within a newly formed Meta Superintelligence Labs (MSL). Shah's new role focuses on developing and integrating what Meta calls "personal superintelligence" across its platforms, including both the Family of Apps (FoA) and Reality Labs.
Bosworth emphasized that while the metaverse remains a top priority for the company, the approach is evolving. The metaverse thesis has been proven, and competition is ramping up, so Meta aims to leverage AI as the crucial engine behind its future metaverse experiences. Shah himself described the transition as "difficult yet exciting," noting that the initial hype around the metaverse has cooled down. He stressed that AI represents a transformative shift for this generation, promising personalized and context-aware interactions that blend virtual and physical realities.
To fill Shah's previous position, Gabriel Aul takes charge of the Metaverse Product Group, overseeing teams led by Jason Rubin, Samantha Ryan, and Thamara Sekhar. Aul will also manage the Horizon Experiences team, which is now under the leadership of Saxs Persson. Meanwhile, Ryan Cairns continues to lead Horizon OS, which has been elevated to an organizational-level product group with direct reporting to Bosworth. Horizon OS remains focused on creating quality hardware and software tailored for the metaverse, especially in light of upcoming major VR launches and roadmaps.
Bosworth’s memo also highlighted that VR is expanding beyond gaming to become a broader platform for entertainment, productivity, and social connection. Mobile platforms are attracting younger social gamers, and AI-enhanced creation tools are accelerating content development, generating a virtuous cycle. However, the shift away from VR as the primary metaverse driver is evident, with less investment in high-quality VR content and more emphasis on boosting concurrent users on Horizon Worlds, Meta’s metaverse app now available on mobile and web.
A big factor behind this shift seems to be Meta’s growing interest in smart glasses, particularly the recently launched $800 Meta Ray-Ban Display glasses paired with the Neural Band. These devices represent a more immediate consumer opportunity compared to costly VR hardware or the still elusive true AR glasses. AI will be central to these smart glasses, bridging the gap between complex user inputs and seamless, intuitive outputs. Meta envisions AI enabling natural interactions, like answering questions or recognizing surroundings without needing clunky typing or voice commands.
Ultimately, Meta’s strategy signals a pivot from a metaverse-first focus toward an AI-first foundation that supports their broader vision of immersive human communication. While the metaverse remains important, AI is now the core technology driving innovation across Meta’s XR ecosystem and beyond. This shift reflects both the realities of market demand and Meta’s ambition to lead in next-generation computing experiences.