Meta Shifts to AI Devices From Metaverse | Bloomberg Tech 1/13/2026

Major technology conglomerates are recalibrating their long-term strategies to address soaring infrastructure demands and shifting consumer hardware trends, even as the political landscape in Washington introduces new regulatory and geopolitical variables. Amidst a flurry of January 2026 updates, Meta Platforms is pivoting resources toward AI-integrated wearables, Microsoft is overhauling its data center community policies, and the Trump administration is advancing significant trade and financial policy proposals.

Key Points

• Meta's Strategic Pivot: The company is doubling production of its Ray-Ban smart glasses to 30 million units, signaling a shift away from pure metaverse development toward practical AI hardware.
• Microsoft's Infrastructure Pledge: A new five-point plan commits the company to covering increased electricity costs and foregoing local tax incentives to ease community friction over data centers.
• Geopolitical Trade Shifts: The Trump administration is reportedly nearing a trade deal with Taiwan that would lower tariffs to 15% in exchange for expanded TSMC chip production in Arizona.
• Financial Regulation Proposals: A proposed one-year, 10% cap on credit card interest rates has sparked debate, with fintech leaders like Klarna’s CEO supporting the measure against traditional banking opposition.

Infrastructure and Hardware Realignments

The technology sector is witnessing a decisive move from experimental concepts to scalable hardware and sustainable infrastructure. Meta Platforms appears to be accelerating its transition away from the "Metaverse" terminology that defined its recent years. Reports indicate the company is in negotiations with EssilorLuxottica to double the production capacity of its Ray-Ban Meta smart glasses, targeting 20 million to 30 million units annually. This move suggests a strong consumer appetite for voice-based AI assistants integrated into familiar form factors.

Simultaneously, Microsoft is attempting to preempt regulatory and community backlash regarding the immense energy consumption of the AI boom. In a presentation in Washington, D.C., Microsoft President Brad Smith outlined a five-point plan to address the "hyperscaler" impact. Crucially, the company pledged to work with local utilities to pay for grid upgrades necessitated by their operations and announced a move away from accepting local tax incentives. By expanding the local tax base, Microsoft aims to support schools and public services, mitigating the disruption often caused by massive data center construction.

"Being a good citizen in the community is important... We are seeing the same thing to a lesser extent with data centers, but importantly this is what happens in a transformative economy... The fact that they are getting ahead of it, having a goodwill tour, taking on some of the costs, I think that is very important." — Nancy Tengler, CEO of Laffer Tengler Investments

Geopolitics and Domestic Policy Shifts

Beyond corporate boardrooms, the Trump administration is aggressively reshaping the operating environment for global tech and finance. Sources indicate a budding trade agreement with Taiwan that holds significant implications for the semiconductor supply chain. The deal reportedly involves lowering tariffs on Taiwanese goods to 15%, placing the nation on par with Japan. In return, semiconductor giant TSMC would agree to construct four additional manufacturing plants in Arizona by the 2030s, supplementing the facilities already underway. While this bolsters U.S. domestic chip production, analysts warn it risks straining relations with Beijing and complicating existing trade frameworks.

On the domestic financial front, the administration has floated a controversial proposal to cap credit card interest rates at 10% for one year. While traditional banks warn this could restrict access to credit, the measure has found unlikely support within the fintech sector. Sebastian Siemiatkowski, CEO of Buy Now, Pay Later (BNPL) firm Klarna, defended the proposal, arguing that the current system disproportionately harms lower-income consumers.

"I think the President is right. Americans are being ripped off... 160 billion dollars in interest charges last year, $31 billion in fees. That is an extraction machine. We have seen in Europe that putting in regulation caps work really well." — Sebastian Siemiatkowski, CEO of Klarna

AI Integration and Market Resilience

The integration of Generative AI continues to drive market valuation and corporate partnerships. Apple’s decision to utilize Google’s Gemini AI to power Siri marks a significant consolidation of power within the "Mag 7" cohort. Analysts view this partnership as a necessary pragmatic step for Apple, which faced pressure to modernize its voice assistant without incurring the massive capital expenditures required to build a proprietary foundation model from scratch.

Despite heavy spending—such as JP Morgan’s report of expenditures coming in $9 billion above estimates largely due to technology investments—market sentiment remains buoyant. Investment experts note that unlike the dot-com era, current market breadth suggests stability rather than a bubble. With approximately 62% of stocks trading above their 200-day moving average, the rally appears supported by tangible productivity gains and robust demand for AI infrastructure, particularly in the semiconductor and energy sectors.

As earnings season progresses, investors will be closely monitoring how these capital-intensive AI strategies translate into revenue, and whether the proposed regulatory caps from Washington will move from rhetoric to legislation.