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Meta to Infuse Metaverse Games with Generative AI Tech
Read now for a 5-minute tech market update.
Kristoffer Lindström
July 03, 2024
TECH BRIEF
Meta is aiming to integrate more generative AI technology into its virtual, augmented, and mixed reality games to bolster its metaverse strategy. The company plans new gaming experiences and improvements in workflow and time-to-market using AI-driven tools. Despite selling millions of their Quest units, Meta's metaverse platform has struggled to attract users, leading to financial strain. In response, Meta has licensed some software features to third-party manufacturers and increased investment in metaverse game projects.
💡 Insight: Meta’s push to integrate generative AI into metaverse games signals a strategic pivot aimed at revitalizing interest in its VR, AR, and mixed reality products. By focusing on dynamic, non-deterministic gameplay and AI-powered development tools, Meta aims to reduce production time and costs, potentially attracting smaller developers while expanding its ecosystem beyond proprietary platforms. Given the lag in monetization, this long-term investment underlines Meta’s commitment to solidifying its position in an increasingly competitive market dominated by rapid technological advancements and emerging AI applications in gaming.
Netflix has started the phaseout of its cheapest ad-free plan in Canada and the UK, a move announced earlier this year. Existing subscribers will need to switch to either an ad-supported or pricier ad-free option. The streaming giant, which hasn't divulged a timeline for similar US steps, saw a 54% increase in operating income largely due to subscriber fees and growth in its ad business. Other platforms, like Amazon Prime and Disney+, have also hiked prices or introduced ad breaks for content.
💡 Insight: Netflix's strategic phaseout of its cheapest ad-free tier aligns with broader industry trends towards ad-supported models to enhance revenue per user. With 40% of new sign-ups opting for the ad-supported plan, Netflix is monetizing viewership while potentially setting a precedent for other streaming platforms.
UK fintech Revolut saw its 2023 revenue nearly double to £1.8 billion, with interest income growing sixfold from £83 million in 2022 to £500 million, as reported in its latest annual accounts. Despite increased credit losses scrutinizing profits, Revolut's customer base soared to 45 million globally as of mid-2024. The firm's push to securing a UK banking license progresses as auditor BDO approves the accounts, boosting its future growth prospects.
Tesla stocks increased by 10% after Q2 production and deliveries outpaced analysts’ predictions. Total Q2 deliveries stood at 443,956 vehicles, quickening from Q1 but slower than a year ago. Stocks closed at $231.26 on Tuesday, 7% down overall for 2024. Despite recent sales setbacks, Tesla's attempts to spur sales include discounts and zero-interest loans in China - a key market accounting for 22.5% of total sales.
Figma has temporarily disabled its AI-powered design tool, Make Design, after it was discovered copying Apple's weather app. The issue, stated to be a result of the underlying design systems, was promptly addressed following a tweet from Andy Allen, CEO of Not Boring Software. Figma CEO Dylan Field has pledged only to re-enable the feature after a comprehensive QA evaluation.
QUICK
Nvidia Faces French Antitrust Charges over CUDA Software Dominance in AI Sector - Nvidia faces potential antitrust charges from French authorities over its CUDA software. This follows a surge in Nvidia's dominance in the AI sector, where its GPUs, driven by CUDA, have become essential. Regulators question whether Nvidia unfairly monopolised the market by tying GPUs to CUDA.
Thiel's Founders Fund Spearheads $85M Investment in AI Platform Sentient - Peter Thiel's Founders Fund spearheaded an $85M investment in open-source AI platform Sentient, with backing from Pantera Capital, Framework Ventures, and other significant investors.
Anthropic Launches Funding Program for Comprehensive AI Benchmarks Development - Anthropic is launching a funding program aimed at creating advanced AI benchmarks. The end goal is to boost AI safety and performance measurement, with an emphasis on security and societal implications.
AI Startup Magic Eyes $1.5B Valuation in Latest Fundraising Round - AI startup Magic looks to raise over $200 million, potentially tripling its valuation to $1.5 billion, despite no current product or revenue. The imminent funding aims to boost the development of innovative AI-based coding assistance models.
AI Startup Clay Secures $63M CAD, Eyes Global Growth with Sales Automation - AI startup Clay has raised $46M in Series B funding, led by Meritech Capital, pushing its post-money valuation to $500M. Clay, which automates marketing tasks, has over 100,000 users and 2,500 customers.
Industry Ventures Unveils $900M Fund to Boost Early-stage VCs, Startups - Industry Ventures raised a $900M early-stage hybrid fund for investing in emerging managers and growth-stage startups, enlarging the firm's assets to over $8 billion.
Suno Launches Innovative AI Music App for iOS in U.S. - Suno's AI-powered music generation, now available on iOS, enables creation of complete songs from text or sound prompts. Expansion to Android and other territories is planned, despite legal disputes with the music industry.
AI Video Startup Runway in $4B Valuation Talks with General Atlantic - AI video firm Runway is discussing a $450 million funding round led by General Atlantic, potentially valuing it at roughly $4 billion.
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