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Meta plans to test an AI pendant over the next year as part of a 'wearables for work' strategy to hook users on its AI models and drive consumer agent subscriptions, following its acquisition of startup Limitless.
Meta's Reality Labs division recorded $4 billion in operating losses last quarter on revenue of $42 million. The company hopes new AI devices and agents will drive subscription revenue beyond hardware margins.
A recent Instagram account hijacking exploit bypassed Meta's AI support for password resets. Attackers used AI-generated videos to pass liveness checks for verified accounts and VPNs to spoof locations, exploiting the removal of human tech support.
Laffont estimates AI-enabled ads currently make up about 25% of ads served by Meta and Google, a penetration he expects to reach 100% and represent a $150B revenue pool.
He argues high-quality companies like Amazon, Meta, and Microsoft are being undervalued as capital chases the AI 'new new thing,' similar to how Berkshire Hathaway was overlooked during the dot-com bubble.