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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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EU Accuses Meta of Failing to Keep Under-13s Off Facebook and Instagram

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European Union regulators have issued preliminary findings against Meta Platforms, saying the company has failed to effectively prevent children under the age of 13 from using Facebook and Instagram.

The European Commission said its investigation found that Meta’s current safeguards do not meet the requirements of the Digital Services Act, the bloc’s landmark online safety law.

Although Meta’s terms of service require users to be at least 13 years old, regulators said the company’s age-verification systems are insufficient. Children can reportedly create accounts simply by entering a false date of birth, with no effective mechanism in place to confirm their real age.

According to the Commission, between 10% and 12% of children under 13 in the European Union are using Facebook or Instagram. That figure is significantly higher than Meta’s own internal estimates.

Regulators also said Meta failed to adequately consider established scientific research showing that younger children are particularly vulnerable to potential harms associated with social media use, including exposure to inappropriate content and risks to mental well-being.

Meta has rejected the Commission’s preliminary conclusions. In a statement, the company said both Facebook and Instagram are intended only for users aged 13 and older and that it already has systems in place to identify and remove underage accounts.

The company added that it continues to invest in technologies designed to detect younger users and indicated that additional safety measures will be announced in the coming days.

Meta also argued that determining a user’s true age remains a challenge across the technology industry and said a broader, industry-wide solution is needed. The company pledged to continue working with European regulators on the issue.

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The findings come as several EU member states consider introducing wider restrictions on children’s access to social media, including proposals to ban use by those under 15.

To address the problem, the European Union is preparing to launch its own age-verification app. European Commission President Ursula von der Leyen said earlier this month that the technology is ready for rollout, although no official launch date has been announced.

Meta now has the opportunity to review the Commission’s findings and submit a formal response.

If the preliminary conclusions are upheld, the Commission could issue a binding non-compliance ruling. Under the Digital Services Act, penalties can reach up to 6% of a company’s global annual revenue, potentially exposing Meta to fines worth billions of euros.

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Europe Emerges as Rising Hub in Global Race for AI Talent

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Europe is strengthening its position in the global competition for artificial intelligence talent, as stricter U.S. immigration rules and shifting international workforce trends encourage more professionals to consider careers across the continent.

A new study by the Germany-based think tank Interface found that countries including Ireland, Germany and the Netherlands are increasingly attracting AI specialists, helping Europe establish itself as a major global market for skilled technology workers.

The research, based on data from workforce intelligence firm Revelio Labs, analysed 1.6 million AI professionals worldwide. It found that while the United States and India remain the dominant players, Europe is emerging as a strong third centre for AI expertise.

The United States continues to lead in advanced AI engineering and research roles, while India remains particularly competitive in software development and non-technical positions. Both countries have close to one million AI professionals.

Within Europe, the United Kingdom ranks as the world’s third-largest AI labour market, with around 145,000 professionals. Germany has become one of the continent’s standout performers, boasting approximately 17,000 AI engineers, the fourth-highest total globally.

Several other European nations, including Italy, France and the Netherlands, also rank among the world’s top 10 markets by total AI workforce.

On a per-capita basis, however, smaller countries are proving especially competitive. Ireland ranks second globally behind Singapore, with 4.19 AI professionals for every 1,000 residents. Switzerland, Luxembourg, the Netherlands and Denmark also place among the world’s leading markets by population.

The Netherlands has become an increasingly attractive destination for American AI professionals relocating to Europe. It now has the highest number of AI engineers within the European Union, although investment in Dutch AI start-ups remains below the European average.

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European cities are also gaining prominence. Munich, Amsterdam and Berlin are the only cities in Europe to rank among the world’s top 25 for concentration of AI professionals.

The study also highlighted the growing importance of Indian talent to Europe’s AI ambitions. Indians now account for more than 16% of the global AI workforce, with an increasing number choosing Europe for education and employment.

Across the European Union, the share of Indian AI professionals rose from 7.7% in 2024 to 8.3% in 2025. Ireland has seen particularly strong growth, with Indian professionals now making up nearly 30% of its AI workforce.

Researchers said Europe’s ability to develop domestic talent while continuing to attract skilled workers from abroad will be critical to maintaining its growing role in the rapidly evolving AI sector.

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Study Finds Chatbots Can Mirror Hostility in Heated Exchanges

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A new academic study has found that ChatGPT can produce abusive language when exposed to escalating human conflict, raising fresh concerns about how artificial intelligence behaves in tense interactions.

The research, published in the Journal of Pragmatics, examined how the chatbot responded to arguments that gradually became more hostile. Researchers presented the system with a sequence of five increasingly heated exchanges and asked it to generate what it considered the most plausible reply.

According to the findings, the AI’s tone shifted as the conversations intensified. While early responses remained measured, later replies began to mirror the aggression in the prompts. In some cases, the chatbot produced insults, profanity and even threats.

Examples cited in the study included statements such as “you should be ashamed of yourself” and more explicit language involving personal threats. The researchers said this pattern suggests that prolonged exposure to hostile input can push the system beyond its usual safeguards.

The study was co-authored by Vittorio Tantucci and Jonathan Culpeper at Lancaster University. Tantucci said the results show that AI can “escalate” alongside human users, potentially overriding built-in mechanisms designed to limit harmful responses.

“When humans escalate, AI can escalate too,” he said, noting that this behavior raises questions about how such systems should be deployed in sensitive environments.

Despite the concerning examples, the researchers found that the chatbot was generally less aggressive than human participants in similar scenarios. In some cases, it attempted to defuse tension through sarcasm or indirect responses rather than direct confrontation.

For instance, when faced with a threat during a simulated dispute, the AI responded with a sarcastic remark rather than escalating the situation further. This suggests that while the system can adopt hostile language, it may also attempt to manage conflict in less direct ways.

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The findings add to ongoing debates about the role of artificial intelligence in areas such as mediation, customer service and online communication, where systems may encounter emotionally charged interactions.

Experts say the research highlights the importance of continued testing and refinement of AI safety measures, particularly as such tools are increasingly used in real-world settings involving human conflict.

OpenAI, the developer of ChatGPT, had not issued a public response to the study at the time of publication.

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