Mark Zuckerberg, CEO of Meta Platforms Inc., unveiled the first pair of augmented reality glasses, aiming to offer a hands-free alternative to smartphones. Meta’s unprecedented AI buildout involves $600 billion in US infrastructure spending, causing concern on Wall Street as Meta’s stock dropped 12%, losing over $200 billion in market cap.

Despite Meta’s $20 billion quarterly profit, heavy AI spending led to operating expenses soaring $7 billion, raising questions on revenue generation. With no clear budget or revenue forecast, Zuckerberg emphasized AI’s promise, hinting at new products to come in the future.

While Meta’s aggressive AI spending worries investors, Google and Nvidia thrive with similar investments. OpenAI spends as much as Meta but lacks a robust product base. Meta’s lack of a fast-growing product raises concerns about sustainability and profitability in the AI market.

Meta’s AI products like Meta AI Assistant and Vibes video generator show promise but lack significant business impact. Vanguard smart glasses hint at future potential, but Meta needs to translate experiments into fully formed products to justify heavy infrastructure spending.

Zuckerberg stresses excitement for new AI products but faces pressure as Meta’s focus on infrastructure spending overshadows product launches. With no groundbreaking AI product yet, Meta must define its role in the industry and capitalize on data and technology to drive innovation and revenue.

Read more at Yahoo Finance: Meta has an AI product problem