Bloomberg Tech — "Meta Shifts to AI Devices From Metaverse"

Date: January 13, 2026
Hosted by Bloomberg

Episode Overview

This episode zeroes in on Meta’s strategic pivot from metaverse initiatives to a full embrace of AI-powered devices—most notably voice-driven smart glasses. The discussion explores broader AI adoption in banking and tech, high-stakes maneuvers in the chip industry, and policy shifts across finance and geopolitics that impact technology markets.

Key Topics & Insights

1. Meta’s Shift: Metaverse to AI Devices

Timestamps: 51:34–55:00

• News: Meta confirmed job cuts in its metaverse division and a sharpened focus on AI devices, like Ray-Ban Meta smart glasses, as sales and demand surge.

  • EssilorLuxottica, Meta’s partner, may double capacity for these smart glasses from 10 to 20 million units, with potential for 30 million if demand persists.
  • Meta Compute initiative seeks to build sovereign computing capacity as AI workloads soar.

• Market Perspective: Investors and analysts see Meta’s pivot as a long-awaited realignment toward pragmatic business goals and away from speculative metaverse bets.

  • Nancy Tengler (CEO, Tengler Investments, 53:50):
    “The sooner Zuckerberg gets Metaverse out of the vocabulary in the headlines, the better off it is for the company… They’ve obviously identified a market, the demand is there, and that’s where they should be focused.”
  • On emerging AI device adoption:
    “I think the adoption [of AI assistants] is much quicker than most people understand. We’ll start to hear about that in earnings. We got productivity growth at 4.9% last quarter, above GDP.”

• Meta’s Strategy:

  • Redirection of resources from long-term VR/AR “metaverse” vision to immediate, high-demand products like AI-glasses.
  • Emphasis on real productivity gains and consumer AI usage.

2. AI Across Banking and Investment

Timestamps: 07:20–15:00

• J.P. Morgan’s AI Push:

  • Despite higher-than-expected expenses, CEO Jamie Dimon maintains that AI investment is essential for efficiency and competitiveness.
  • Alexandra Visa Day (Co-CEO, Evident, 11:20):
    “JP Morgan is very much leading—number one—for three and a half years in a row. They are leading on AI deployment and embedding it throughout the bank.”

• ROI and Future Outlook:

  • Banks are embedding AI in all functions, from KYC automation to investment banking.
  • Full ROI on agentic (autonomous) AI is still 3–4 years off.
  • Alexandra Visa Day (13:40):
    “The technology here is just 10% of the problem. 90% is rethinking processes entirely…building a digital twin and putting it back in. That talent is what JP Morgan can attract.”

3. US Military & AI Integration: SpaceX’s GROK

Timestamps: 18:55–21:20

• Defense Secretary Pete Hegseth:
  • Grok AI from Elon Musk’s xAI to be integrated into defense systems; signals a shift to "AI-first" military doctrine.
  • Addressed the defense industry's need for faster, more iterative solutions:
    Quote (19:13):
    “Elon wrote it [the new playbook] with his algorithm. Question every requirement, delete the dumb ones, and accelerate like hell.”

4. US-China AI Race: Baidu’s Heavy Investment

Timestamps: 22:00–27:00

• Henry He (CFO, Baidu):
  • Over $14 billion invested since 2023—cloud revenue up 128% YoY; 200%+ growth in search AI integration.
  • Highlights China’s advantages: pre-built digital infrastructure and vast data accumulation from the mobile era.
  • Baidu’s "closed-loop, full-stack" approach cited as essential for sustainable AI innovation.
  • Quote (24:40):
    “Any company with close loop, full stack—computing power, data, and use cases—will be sustainable on AI.”

5. Apple-Google AI Deal: Siri's Transformation

Timestamps: 28:10–33:40

• Deal: Apple to use Google Gemini AI to power Siri and core services.

  • Analysts see substantial valuation upside for Apple.
  • Dan Ives (Wedbush, 29:12):
    “They’ve had an invisible AI strategy. … This is a huge step forward and it’s not going to happen internally. It had to happen from Google Gemini.”
  • Apple’s AI development is expected to build off this foundation, with speculation about future “freemium” services.

• Challenges Ahead:

  • Talent drain and developer loss in Cupertino hamper Apple’s in-house AI.
  • Dan Ives (32:12):
    “It’s an Everest-like uphill battle… They need to do something. You cannot have the fourth industrial revolution’s biggest tech transition…come and go and they don’t monetize.”

6. Microsoft Responds to Data Center Pushback

Timestamps: 57:00–59:50

• Electricity & Community Impact:
  • Microsoft promises to pay for local electricity increases caused by new data centers and withdraw from some local tax incentives.
  • Seen as proactive response to political and community concerns as AI-driven infra accelerates.
  • Maggie Easton (Bloomberg, 58:30):
    “They’re going to ensure they’re paying for any increase in costs that they’re responsible for.”

7. Chip & Geopolitical News

Timestamps: 1:08:30–1:13:25

• US–Taiwan Trade Talks:

  • Prospective deal would lower tariffs and prompt TSMC to build more US fabs—raising America’s domestic AI chip resilience.
  • Risk: May antagonize China and affect rare-earth supply chains.

• SK Hynix (South Korea):

  • Committing $12.9B to new chip packaging facility for AI/data center demand. Completion aimed for 2027.

8. Fintech Focus: Credit Card Rate Caps & BNPL

Timestamps: 1:15:00–1:22:45

• President Trump’s Proposal:

  • One-year 10% cap on credit card interest rates. Opposed by traditional lenders, but welcomed by Klarna CEO.
  • Sebastian Siemiatkowski (Klarna CEO, 1:16:22):
    “$160 billion in interest charges last year…that is not a financial services industry, it’s an extraction machine.”

• Klarna’s Model:

  • Most products interest-free; US credit card offering will comply with any cap.
  • Asserts that lower-cost lending models are possible and sustainable, based on European experience.

Notable Quotes & Memorable Moments

• Meta & AI:
  “The sooner Zuckerberg gets Metaverse out of the vocabulary…the better off it is for the company.”
  — Nancy Tengler (53:50)

• Banking & AI:
  “JP Morgan is very much leading…the AI deployment race.”
  — Alexandra Visa Day (11:20)

• Defense and AI:
  “Winning requires a new playbook. Elon wrote it with his algorithm…accelerate like hell.”
  — Defense Secretary Pete Hegseth (19:13)

• Apple’s AI Awakening:
  “This is a huge step forward and it’s not going to happen internally. Had to happen from Google Gemini.”
  — Dan Ives (29:12)

• Credit Cards & Fairness:
  “That’s not a financial product, it’s a regressive tax with airline miles.”
  — Sebastian Siemiatkowski, Klarna CEO (1:17:40)

Timeline of Important Segments

• 07:20–15:00 — AI spend, banks’ transformation, JP Morgan leadership
• 22:00–27:00 — Baidu’s AI investment and China’s model
• 28:10–33:40 — Apple-Google AI deal and Apple’s AI strategy critique
• 51:34–55:00 — Meta’s shift: metaverse layoffs, smart glasses market surge
• 57:00–59:50 — Microsoft’s electricity cost plan for data centers
• 1:08:30–1:13:25 — US–Taiwan chip deal and geopolitical implications
• 1:15:00–1:22:45 — Credit card interest rate cap, Klarna response

Tone & Style

The conversation is fast-paced, insightful, and direct—balancing financial analysis, tech trends, and policy impacts, with expert voices candidly evaluating industry pivots and challenges.

Summary Takeaways

• Meta is rapidly retreating from the metaverse, doubling down on real-world AI devices as the AI adoption wave grows.
• Major US banks, led by JP Morgan, see AI as essential for efficiency and future competitiveness—though full ROI remains several years away.
• Defense, telecom, and chip industries are all accelerating their own AI buildouts and forming new strategic alliances (US-China, Apple-Google, Microsoft-localities).
• Policy shifts—from credit card rate caps to chip-fab subsidies—reflect heightened competition and focus on sovereignty in tech infrastructure.
• Investors are closely tracking these pivots for signs of sustainable earnings, productivity growth, and market leadership in the AI era.