Meta’s highly anticipated mixed reality project, internally known as Phoenix, has been delayed. The company has decided to push back the launch of its upcoming headset to the first half of 2027, extending the timeline by nearly a year from its original target of 2026. This decision, as per internal communications seen by Business Insider, signifies another adjustment in Mark Zuckerberg’s expansive metaverse vision. Meta aims to strike a balance between its augmented reality aspirations and its increasing emphasis on artificial intelligence.
Insiders familiar with the situation revealed that the delay was prompted after Reality Labs, Meta’s division overseeing metaverse and hardware initiatives, was instructed to review its schedules and expenditure plans. Following a recent evaluation meeting with CEO Mark Zuckerberg, senior executives reportedly received direct advice to prioritize “sustainability” and quality over speed. In a memo from Maher Saba, vice president of Reality Labs Foundation, employees were informed that various teams would need to “realign their plans and deadlines” post-discussion. Saba cautioned that extending timelines should not be seen as an opportunity to incorporate additional features or take on extra tasks.
The decision to postpone the launch not only reflects a broader deceleration in Meta’s metaverse spending but also stems from practical considerations, as indicated in internal documents. In a separate message to staff, Reality Labs executives Gabriel Aul and Ryan Cairns noted that rescheduling the release to 2027 would allow for more time to refine the product details. Describing Phoenix as a “highly intricate” offering that will significantly alter Meta’s core user experience, they emphasized the importance of delivering a fully refined and dependable product without compromises.
Individuals with firsthand knowledge of the device disclosed to Business Insider that Phoenix is a goggle-style headset connected to an external puck-shaped module for added processing power. Despite internal divisions over the accessory, it was retained to reduce the headset’s weight and prevent overheating. Employees who have seen the latest prototypes likened its design to Apple’s Vision Pro, with Meta’s version intended to be less bulky and more comfortable for prolonged use.
Meta’s leadership has been navigating a fine line between innovation and restraint, especially considering the significant expenditure by Reality Labs exceeding $70 billion since 2021. The group is now reportedly facing budget reductions of up to 30%, impacting teams across Horizon Worlds, Meta’s social virtual environment, and its AR/VR hardware divisions.
In parallel with the delay in its Phoenix mixed reality glasses, Meta is strengthening its focus on AI wearables. The company recently acquired Limitless, a startup renowned for its development of a small AI-powered pendant that records conversations and generates automatic summaries. Both companies confirmed the acquisition on Friday.
Meta’s spokesperson expressed excitement over the acquisition, highlighting the alignment with Meta’s goal to advance AI-enabled wearables. Limitless CEO Dan Siroker, in a blog post, announced the deal, emphasizing their shared vision with Meta in bringing personal superintelligence to the masses. Financial terms of the acquisition were not disclosed.
This acquisition underscores Meta’s increasing emphasis on AI hardware, following the positive reception of its Ray-Ban smart glasses, which seamlessly integrate Meta’s digital assistant and have emerged as one of the company’s most well-received products in recent years.