In a surprising twist, Palmer Luckey, the founder of Oculus and former employee at Facebook, revealed his significant investment in Meta despite being terminated from the company back in 2016. Although Luckey expressed doubts about the much-hyped metaverse concept, he poured all his available funds into purchasing Meta shares just after the company rebranded itself in 2021. This decision came before the boom of generative AI and chatbots, when Meta was heavily promoting its vision of a virtual reality world accessible via VR headsets. Despite some critics declaring the metaverse dead in 2023, Luckey maintains that it’s too early to dismiss this ambitious project entirely.

Luckey's bold move to invest in Meta occurred shortly after the company announced its rebranding from Facebook to Meta in late 2021. During an episode of the "What’s News" podcast, he admitted that although he had reservations regarding the term "metaverse," which he described as a buzzword, he still decided to commit all his liquid assets towards buying Meta stocks on the very day of the name change. His rationale behind this choice was rooted in his belief that Meta represents more than just fleeting trends like the metaverse; instead, it embodies long-term technological innovation.

Prior to the rise of generative artificial intelligence (AI) and chatbots, Meta was primarily focused on pitching the idea of the metaverse to both investors and consumers. The metaverse was envisioned as a futuristic virtual reality space where users could interact through VR headsets. However, interest in this concept waned over time, leading Silicon Valley to shift its attention elsewhere. In fact, Ed Zitron declared the death of the metaverse in 2023 in an obituary published by Business Insider. Despite these setbacks, CEO Mark Zuckerberg remains committed to investing substantial resources into developing the metaverse alongside advancing AI technologies.

Zuckerberg recently informed investors that Meta plans to allocate between $60 billion to $65 billion in capital expenditure for 2025, with AI serving as one of the primary focuses. When questioned about his stance on Meta's evolving vision, Luckey acknowledged the increased emphasis on AI discussions within the tech industry. He explained that such shifts are inevitable for publicly traded companies aiming to align themselves with peer organizations heavily invested in AI. Nevertheless, Luckey cautioned against interpreting public statements as definitive indicators of internal strategic priorities, citing his own undisclosed goals for 2026 as an example.

Reflecting on past events, Luckey shared insights into his departure from Facebook in 2016 following a controversial donation to an anti-Hillary Clinton political group. While Meta officially denied firing him due to this contribution, Luckey views his experience as a valuable business lesson. Interestingly, he expressed no animosity toward seeing Zuckerberg socializing at Donald Trump's Mar-a-Lago resort, highlighting his pragmatic attitude toward professional relationships.

Palmer Luckey's investment in Meta exemplifies a calculated risk taken amidst skepticism surrounding the metaverse concept. By channeling all his liquid assets into Meta shares during a pivotal moment in the company's transformation, Luckey demonstrated confidence in Meta's broader technological aspirations beyond current market trends. His perspective underscores the importance of distinguishing between short-term hype cycles and enduring innovations in the rapidly evolving tech landscape.