Meta's AI spending spree is helping make its Quest headsets more expensive
Summary
Meta is raising the prices of its Quest virtual reality headsets by $50 to $100 starting April 19 due to higher costs for memory chips and other components. This price increase is partly caused by Meta’s large spending on artificial intelligence (AI) infrastructure, which has increased demand for the same computer parts used in the headsets.Key Facts
- The price of Meta’s Quest VR headsets will go up by about 12 to 20 percent starting April 19.
- Meta cites a global rise in prices for critical components like memory chips as the main reason for the increase.
- Meta is investing $115 to $135 billion this year on capital projects, mainly in AI infrastructure.
- Significant investments include $21 billion more in data center company CoreWeave and $10 billion for a new data center in El Paso.
- The company’s large AI spending drives demand for GPUs and memory chips that are also used in Quest headsets.
- Meta has lost $73 billion in its VR-focused Reality Labs division so far.
- Meta is planning to cut spending on its metaverse division by up to 30 percent and focus more on AI.
- New prices for the Quest 3S and Quest 3 models range from $350 to $600, up from $300 to $500 previously.
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