Metaverse frenzy cools as ChatGPT gains steam

Major tech heavyweights are downsizing workforces in metaverse-related businesses and banking on the fast-growing artificial intelligence-generated content sector, experts say. — Bloomberg

BEIJING: The frenzy over metaverse, a tech buzzword that promises a future where virtual and physical worlds are inextricably interconnected, is cooling.

Major tech heavyweights are downsizing workforces in metaverse-related businesses and banking on the fast-growing artificial intelligence-generated content (AIGC) sector, experts say.

The concept of the metaverse refers to a shared virtual environment or digital space created by technologies including virtual reality (VR) and augmented reality (AR).

Companies are becoming more rational toward the metaverse, which requires large amounts of capital input in technology research and development and talent training, and improvement in related laws and regulations, they added.

Meanwhile, the rapid evolution of generative artificial intelligence (AI) represented by ChatGPT is expected to boost the development of the metaverse.

Chinese VR headset maker Pico, owned by tech company Byte-Dance, has reportedly carried out a round of layoffs, trimming some teams by as much as 30%.

Pico said it is making organisational adjustments and this will not affect its normal operations. The company has also lowered its sales target for 2023, without disclosing specific numbers.

Tencent Holdings Ltd said it will change the hardware development path of its extended reality business by adjusting some teams after media reported the gaming and social media major was disbanding part of its extended reality team, which was launched in June last year.

A host of foreign tech companies including Meta and Microsoft also announced layoffs or streamlining of their metaverse teams as they seek to trim costs amid rising fears of a global recession.

ChatGPT, the latest chatbot launched by US-based AI research company OpenAI, has gained wide popularity since its debut in November and revolutionised the AI field due to its advanced conversational capabilities.

A batch of Chinese tech companies, including Alibaba, Baidu and NetEase, are scrambling to roll out ChatGPTlike AI chatbots or products.

Major tech giants are doubling down on the AIGC sector, which will have an impact on the investments in metaverse that once gripped the global technology industry, said Shen Yang, a professor from the School of Journalism and Communication and director of the Metaverse Culture Laboratory at Tsinghua University.

“The popularity of ChatGPT around the world has allowed people to see the explosive growth of AI in recent years, injecting fresh impetus into the tech industry, given that conversational chatbots can be used in a wide range of fields,” Shen said.

“The metaverse and AIGC are not antagonistic. Tech companies’ accelerated layout in the AIGC segment will give a strong boost to the development of virtual humans,” he said, adding that AI technology has played a vital role in improving users’ interactive and immersive experiences in the virtual world.

Global consulting company PwC has highlighted the metaverse as the next frontier and painted a rosy outlook for the metaverse-related economy, which is expected to grow to US$1.5 trillion (RM6.7 trillion) in 2030, mainly driven by AR and VR technologies that are vital components to create a sense of virtual presence in the metaverse.

China will speed up its layout in the metaverse sector, bolster the construction of new infrastructure including 5G, blockchain and industrial Internet, as well as strengthen regulations to promote the healthy development of the metaverse, said Ren Aiguang, deputy head of the science and technology department at the Industry and Information Technology Ministry, at a metaverse industry conference last month. — China Daily/ANN