Meta Forms AI Team Under Reality Labs, Leveraging News Corp Content

Meta Platforms (META) shares remained stable as the company announced the formation of a new applied artificial intelligence (AI) engineering group within its Reality Labs division. The MOVE underscores Meta's strategic focus on enhancing AI capabilities across its platforms, with a particular emphasis on integrating high-quality news content.

The team, led by Maher Saba, VP of Reality Labs, will report directly to CTO Andrew Bosworth. A multi-year agreement with News Corp, valued at up to $50 million annually, grants Meta access to archived and fresh journalistic content from the U.S. and U.K. This partnership aims to bolster AI model training and product differentiation.

Reality Labs is pivoting toward AI-driven wearables, signaling a long-term growth play despite ongoing financial losses. The licensing model with publishers like News Corp may set a precedent for paid content deals in the AI space, creating new revenue streams for media companies.