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Meta Scales Back Metaverse Ambitions as VR Industry Looks Ahead

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Meta has announced cuts to its metaverse operations after years of promoting virtual reality as the future of human interaction, signaling a major shift in the company’s strategy. The start of 2026 marked what many see as the final blow for the digital worlds once hailed by Mark Zuckerberg as the next big computing platform.

At the beginning of January, Meta laid off 10 percent of staff in its Reality Labs division, primarily employees involved in metaverse development, including data engineers, software engineers, and game developers. The company’s fourth-quarter earnings confirmed the financial strain: Reality Labs posted $6.2 billion in losses in Q4 and $19.1 billion for the full year. Zuckerberg told investors that while the metaverse is no longer the primary focus, Meta will continue to develop extended reality (XR) technologies, particularly AI-integrated wearables such as its Ray-Ban smart glasses.

Experts say Meta’s retreat does not spell the end of virtual reality. George Jijiashvili, senior principal analyst at Omdia, said the metaverse failed largely because the technology was not ready to support a mainstream consumer platform. “The vision of the platform did not coincide with the technological status quo,” he explained, noting that headsets, smart glasses, and other necessary hardware have yet to mature.

Per Ola Kristensson, a professor of interactive systems engineering at the University of Cambridge, emphasized the ergonomic and practical limitations of VR. In a 2022 study, participants working in VR headsets for a full 40-hour week reported frustration, visual fatigue, and lower productivity. “It’s not ergonomic,” Kristensson said. “If you want a sip of coffee, you have to move the helmet. Small, subtle things don’t work, which makes extended use uncomfortable.”

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Despite these challenges, researchers see opportunities in XR and augmented reality (AR). Kristensson noted that focusing on practical applications, such as AI-integrated AR glasses, could transform daily life. “Your glasses become your phone and an AI interface. They can project digital information into the physical world and interact with robotics,” he said.

Meta’s shift also mirrors trends in other virtual platforms. Kim Currier of the Decentraland Foundation said the decline of corporate-driven hype has allowed virtual worlds to become more community-focused. “There has been a clear shift away from corporate experimentation toward user-led activity,” she said, pointing to community events and meetups as examples of how engagement has become more genuine.

Gaming platforms like Roblox and Fortnite demonstrate that user-centric digital experiences can thrive without the spectacle of a centralized metaverse. Analysts suggest Meta’s pivot to mobile for its Horizon platform is a response to these successes. “Increasingly, our worlds are digital, more connected. People just didn’t want Meta’s 2021 version of the metaverse,” Jijiashvili said.

While Meta retreats from its original vision, experts say VR and XR technologies are likely to evolve in ways that are more practical, user-focused, and integrated with AI, opening new avenues for digital interaction beyond the high-profile metaverse experiment.

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Meta Launches Muse Spark, Its First Major AI Model in Nine Months

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Meta has unveiled its first major AI model in nine months, following a $14.3 billion (€12.24 billion) investment spree and executive hiring push to rival OpenAI and Google. The American tech company introduced the model, called Muse Spark, on Wednesday, claiming it is faster and smarter than its previous technologies.

The company, founded by Mark Zuckerberg, invested $14.3 billion in Scale AI in June 2025 and recruited its CEO and co-founder, Alexandr Wang, to oversee Meta Superintelligence Labs, which houses teams working on foundational AI models. Zuckerberg also embarked on a hiring campaign, bringing in executives from competitors including OpenAI, Anthropic, and Google.

In a blog post, Meta said, “Over the last nine months, Meta Superintelligence Labs rebuilt our AI stack from the ground up, moving faster than any development cycle we have run before. This initial model is small and fast by design, yet capable enough to reason through complex questions in science, math, and health. It is a powerful foundation, and the next generation is already in development.”

Muse Spark is positioned as a significant upgrade over Meta’s last major release, Llama 4, launched in April 2025. The company highlighted that the model excels in advanced reasoning, particularly in scientific, mathematical, and medical queries. To improve its health advice capabilities, Meta worked with over 1,000 physicians to curate training data, aiming for more accurate and comprehensive responses.

The AI model will power the company’s digital assistant in the Meta AI app and website, with planned integration across Facebook, Instagram, WhatsApp, Messenger, and the Ray-Ban Meta AI glasses. A “contemplating mode” will gradually roll out, allowing multiple AI agents to reason in parallel on complex tasks. Meta’s technical blog noted this feature is designed to compete with high-level reasoning in models such as Gemini Deep Think and GPT Pro.

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Zuckerberg emphasized on social media that Meta aims to build AI products that “don’t just answer your questions but act as agents that do things for you.” Unlike conventional chatbots, these AI agents operate autonomously, gathering information based on user preferences to assist without direct human commands.

One notable shift for Meta is the move away from open-source AI models. Unlike earlier releases, Muse Spark is not available for public download, meaning access to the technology is currently restricted. The company said the model is initially available only in the United States.

Muse Spark underscores Meta’s aggressive push into the competitive AI market, combining extensive investment, executive recruitment, and technical innovation to challenge the dominance of established players like OpenAI and Google.

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OpenAI Urges Governments to Rethink Economy as AI Growth Accelerates

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OpenAI has called on governments to rethink the foundations of the economy, warning that artificial intelligence (AI) could soon surpass human intelligence and drastically change how people work, live, and pay taxes. The company outlined its initial policy ideas on Monday, aimed at mitigating the economic disruption caused by rapid AI adoption in the United States and worldwide.

One key proposal is the creation of a public wealth fund that would give citizens a direct stake in AI-driven economic growth. According to the policy document, the fund could invest in diversified, long-term assets, including AI companies and broader firms adopting AI technologies, with returns distributed to all citizens.

The company also suggested that governments encourage businesses to launch four-day workweek pilot programs without any reduction in pay. This approach aims to balance the productivity gains provided by AI with the well-being of workers. Lawmakers are also urged to modernize tax systems by increasing taxation on corporate income and capital gains instead of labor income, which could be affected by AI-related job losses. The report proposes additional measures, such as taxing companies that replace human labor with automation.

OpenAI recommends that social benefits, including retirement pensions and healthcare, be provided through portable accounts that follow individuals across different jobs, industries, and entrepreneurial ventures. This model would help ensure continuity of support in a labor market increasingly influenced by AI.

These recommendations echo broader discussions among AI leaders about the future of work. OpenAI CEO Sam Altman and xAI’s Elon Musk have previously highlighted universal basic income as a potential necessity as traditional employment declines. Other tech leaders, including Nvidia’s Jensen Huang and Zoom’s Eric Yuan, have advocated shorter workweeks to distribute productivity gains from AI more evenly.

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Concerns about AI’s long-term impact extend beyond economics. In January, Anthropic CEO Dario Amodei warned that superintelligent AI, capable of outpacing human decision-making, poses “existential danger.” He suggested tighter controls on the export of key technologies, such as semiconductor chips used to train large language models, as one way to manage the risk. Amodei also called for transparency laws requiring AI companies to disclose how they guide their models’ behavior.

OpenAI’s policy document represents an early step in urging governments to address the structural changes AI may bring. The proposals highlight the need to rethink traditional concepts of work, taxation, and social support as the technology continues to advance rapidly.

As AI continues to reshape global economies, policymakers and industry leaders face increasing pressure to develop strategies that protect citizens while fostering innovation and sustainable growth.

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Uzbekistan to Produce Humanoid Robots in Partnership with South Korea

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Uzbekistan has signed an agreement with South Korea’s ROBOTIS to launch humanoid robot production, marking a major step in its high-tech ambitions. At the same time, students across the country are learning robotics and programming, gaining skills that could prepare them for careers in the emerging industry.

The agreement, signed between the UzElTechSanoat Association and ROBOTIS, sets out plans to establish humanoid robot production within Uzbekistan, develop manufacturing infrastructure, and train specialists for the growing robotics sector. ROBOTIS, known for its humanoid platforms and smart robotic actuators, will support the creation of technological foundations and help prepare a workforce capable of designing and operating advanced robotic systems.

The initiative forms part of Uzbekistan’s broader push to build a domestic innovation ecosystem, combining industrial cooperation with education. Early exposure to robotics and programming is at the heart of this strategy.

In a robotics classroom, 12-year-old Mirkomil Shodiev demonstrates the impact of these programs. Using an EVO-3 educational robotics kit, he assembles and programs his own robot, controlling its movements through lines of code. “This was created by me,” he says. “You connect it to a computer, write code, and it performs tasks using the motor.”

Mirkomil began IT classes four months ago, learning Scratch and now studying Python, a programming language widely used in web development, automation, and robotics. He hopes to build websites and earn money in the future, reflecting the growing importance of digital skills in Uzbekistan’s economy.

The government’s Digital Uzbekistan-2030 strategy is expanding nationwide training in programming and digital skills. IT education centres and specialised academies are growing to meet rising demand for technology careers. At the Robot Academy, where Mirkomil studies, students aged eight to fifteen gain hands-on experience in programming, robotics, and engineering. “Our students create scientific projects, develop games, and build Telegram bots,” says teacher Navruz Shaydullayev. “Programming helps develop their thinking, logic, and intellectual abilities.”

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Classroom projects emphasize translating digital commands into physical movement, a key principle behind robotics and industrial automation. Students learn to design, assemble, and control machines independently, building skills that can directly feed into the country’s industrial ambitions.

The partnership with ROBOTIS will extend these educational initiatives into the workforce, providing training for engineers, programmers, and technicians in humanoid robotics. Officials hope the program will strengthen Uzbekistan’s technological competitiveness and create highly skilled jobs in a fast-growing global sector.

For students like Mirkomil, the future is already taking shape. “In the future, I want to continue in this field,” he says. “After finishing the courses, I would like to study in Tashkent as well.” As Uzbekistan prepares to manufacture humanoid robots, classrooms across the country are quietly training the people who may one day build them.

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