Meta's AR/VR endeavors are approaching a critical juncture, with 2025 shaping up to be a potentially defining year for the company's Reality Labs division. Andrew Bosworth, Meta's CTO, has emphasized the importance of the coming months, suggesting they could determine whether the company's significant investments in augmented and virtual reality ultimately prove to be visionary or a "legendary misadventure."

Bosworth's perspective highlights the high stakes Meta has placed on its AR/VR initiatives. While acknowledging that the market's ultimate judgment will determine long-term success, he views 2025 as a pivotal year for assessing whether Reality Labs is on the right track. The team will know by the end of the year if they've met their execution goals.

One area where Meta has already seen promising results is its collaboration with Ray-Ban on AI-powered smart glasses. Since their launch in October 2023, these glasses have sold over 2 million pairs, even outselling traditional Ray-Ban models before AI features were added. This success has not only generated excitement among consumers but has also alerted competitors, pulling Meta out of relative obscurity in the hardware segment.

The success of Meta's smart glasses has intensified competition in the AR/VR space. Google recently announced partnerships with Gentle Monster and Warby Parker for smart glasses based on Android XR, while Apple is reportedly planning a smart glasses release in 2026. This increased activity means the clock is ticking for Meta to solidify its position in the market.

Bosworth acknowledged growing competition but stressed that market adoption will ultimately decide the success of Meta's AR and VR tech. He noted feedback in hardware markets is often delayed, so companies must rely on internal confidence and execution. He affirmed Meta's commitment to its ambitious goals for the year, saying, "The progress we make this year is of disproportionate value."

Despite the focus on rivals, Bosworth pointed out that competitor actions mean little if the market doesn't widely adopt Meta's AR and VR products. Mass market adoption is what will truly drive standardization and growth in the industry. He views market success, especially for hardware, as a lagging indicator. Early indicators and internal confidence are crucial in the meantime. This perspective aligns with a lesson he learned from former Meta COO Sheryl Sandberg.

Drawing on Sheryl Sandberg's insight that most companies fail due to poor internal execution rather than being beaten by competitors, Bosworth emphasizes focusing the Reality Labs team on their own plan. He stated, “what I try to do with the team is really focus us, not so much on the competitive landscape as on [whether] we're executing to our standards.” Meta has ambitious plans for the year and is currently on track. The team will know by year-end if they met their execution goals, but whether that execution was sufficient for long-term success will only become clear in five years or more.

Looking ahead to 2025, industry insiders expect Meta to unveil next-gen AR glasses or prototypes that are lighter, more powerful, and fully integrated with AI assistants. The year could also see wider developer adoption, better content ecosystems, and tighter integration between Meta's AR/VR devices and platforms like Instagram, WhatsApp, and Horizon Worlds.

AI is expected to play a critical role in this evolution. The Meta CTO highlighted how artificial intelligence is helping solve key AR/VR challenges like real-time environment mapping, gesture tracking, and contextual awareness. These AI capabilities are not only improving device performance but also enhancing user experience, making AR and VR more practical and intuitive. Meta plans to enhance AI glasses with proactive assistants and integrate AI-powered glasses with true AR experiences for the metaverse.

The stakes for 2025 are high. Success could cement Meta's position as a dominant force in the next computing platform, while failure might relegate Reality Labs to a cautionary tale of technological overreach. The coming months will answer a crucial question: Will Reality Labs transform from an ambitious experiment into a cornerstone of Meta's business model?