Meta reduces AR/VR business -> strengthens artificial intelligence division
Haebom
Meta (formerly Facebook) is cutting staff in its Metaverse division and abandoning its own development of semiconductor chipsets for augmented and extended reality (AR and VR). This appears to be part of a strategy to use external chipsets such as those from Qualcomm. The layoffs are expected to be concentrated in the Agile Silicon Team (FAST) within Reality Labs, which designs custom semiconductors to be used in AR and VR devices. Meta has already been significantly reducing its staff since late last year, and it is reported that these layoffs could affect projects such as AR glasses.
In fact, as I mentioned before, Meta's recent strategy seems to be focusing on complete AI. It seems that they are trying to stop aggressive investment, such as maintaining the existing Oculus and AR/VR in a state of collaboration and making their own semiconductors. For example, they reduced the size of the department that makes their own AR/VR semiconductor chips and strengthened the team that makes AI-only chipsets.
Ironically, the high-performance chipsets and semiconductor equipment that Meta had stockpiled for AR and VR have allowed it to secure an advantageous position in the AI market competition, and this is actually a case where looking at Meta's recent moves such as LLaMA, it seems to show how important it is for the management to be very quick in their judgment and to admit failure and pivot.
Questions and Insights to Consider
Meta's Strategy Change: What does it mean for Meta to abandon its own chipset development and use external chipsets?
Impact of workforce reductions: How will these workforce reductions affect Meta’s metaverse and AR/VR businesses?
Industry-wide implications: What impact will Meta’s decision have on the AR/VR industry as a whole?
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