economist Dean Baker critical Yuan Platform Company (Nasdaq: META) Chief Executive Officer Mark Zuckerberg’s He made a huge bet on the Metaverse, arguing that the roughly $77 billion spent on the project represented not just corporate losses but a broader economic failure with real social costs.
On Monday, he published an article in his newsletter titled “Did Mark Zuckerberg throw $77 billion down the toilet?” Baker said that while Meta’s Metaverse ambitions might be viewed as “just a bad investment decision, and companies make them all the time,” the scale of the spending makes it far more significant.
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He said that when Zuckerberg invested $77 billion in Meta’s virtual reality push, he effectively diverted scarce talent and physical resources from more efficient uses.
“The other side of the story is that when companies make stupid investment decisions, like Zuckerberg did with the $77 billion he put into Meta, it’s not just a loss on paper but a cost to society,” he said.
He noted that software engineers, planners and support staff have been working on the project for years, while physical investments such as office space, computing equipment and significant amounts of electricity are also required.
Baker, co-founder of the Center for Economic and Policy Research, added that these resources “could have been used efficiently,” suggesting that even the construction materials used for Meta’s expansion could support “affordable housing in the expensive Bay Area.”
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With major tech companies now investing hundreds of billions of dollars into artificial intelligence, Baker said the Metaverse’s failed bets are even more important.
He warned that a boom in investment in artificial intelligence was already reshaping the economy, boosting growth by absorbing top engineering talent while placing heavy pressure on power grids and complicating climate goals.
The central question, Baker concluded, is whether Zuckerberg has become a more disciplined steward of capital since the days of the Metaverse. “We may know the answer in 2026.”
Meta did not immediately respond to Benzinga’s request for comment. This story will be updated as soon as we hear back.
