The shareholder has pushed the business to reduce its investment in the Metaverse and its associated technology division.

The internet giant’s investment in the Metaverse has been dubbed “super-sized and terrifying” in an open letter from shareholders to Meta CEO Mark Zuckerberg as reported by Cointelegraph.

Cointelegraph further noted that amidst a sharp decline in the company’s stock price over the past 18 months, the shareholder has pushed the business to reduce its investment in the Metaverse and its associated technology division.

The open letter, which was addressed to Zuckerberg and the board of directors, was released on October 24. Brad Gerstner, the CEO, and founder of the technology investment company Altimeter Capital, wrote it. According to Hedge Follow, Altimeter Capital holds about 0.11% of Meta.

The business has stated that it will invest $10 to $15 billion annually on its Metaverse project, which includes AR/VR technology and Horizon World, but it “may take 10 years to deliver results,” the speaker noted, adding, “An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards.”

He has instead advised the business to place more of an emphasis on artificial intelligence (AI) and less on the Metaverse, as the latter “has the potential to drive more economic productivity than the internet itself.”

While most businesses will find it difficult to monetize AI, he continued, “We believe Meta is very well positioned to use AI to improve all of its existing offerings.”

Gestner’s comments come on the same day the Bank of America downgraded Meta from a “buy” to a “neutral” valuation, partly due to its Metaverse investments likely to remain an “overhang” on the stock because of the “lack of progress” and “new competition from Apple.”

The Metaverse will materialise, according to Vitalik Buterin, co-founder of Ethereum, who also asserted on July 30 that it is “far too early to tell what people genuinely want” and that attempts by corporations like Facebook to implement it will “misfire.”

https://www.financialexpress.com/blockchain/zuckerbergs-100b-metaverse-gamble-is-super-sized-and-terrifying-says-shareholder/2730475/