Meta cutting ~1500 VR/AR positions to focus on AI (gizmodo.com)

Meta is reportedly set to cut approximately 1,500 jobs from its Reality Labs division, which focuses on virtual and augmented reality (VR/AR), as part of a strategic shift toward artificial intelligence (AI). This decision reflects a broader trend within the company, as it aims to reallocate resources and personnel to bolster its AI infrastructure. Reality Labs, which includes products like Oculus headsets and Ray-Ban Stories smart glasses, has faced scrutiny due to its diminishing impact, leading to a 30% budget cut and plans for a major expansion of AI capabilities called "Meta Compute." This initiative is projected to enhance Meta's data center capacity, targeting "tens of gigawatts" of AI compute power. The layoffs and the focus on AI are significant for the AI/ML community as they indicate Meta's commitment to becoming a leading player in AI technology, possibly at the expense of its metaverse ambitions. This pivot underscores a crucial shift in investment and development priorities in the tech industry, as companies reassess the viability of extensive VR/AR projects in light of the growing demand for AI advancements. CEO Mark Zuckerberg emphasizes the importance of this strategic advantage, suggesting that Meta’s future growth in AI could redefine its competitive landscape and operational effectiveness.