META metaverse loses 3.9 billion US dollars, can the car AI save it?

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Nicola Mendelsohn, Meta's global business executive, revealed that the company is continuing its plans for the Metaverse after Meta showed signs of shifting its focus to artificial intelligence (AI).

1. Meta denies abandoning the Metaverse

According to Mendelsohn, Integrating AI tools within Meta's ecosystem will help realize the vision of the Metaverse. The executive denied reports that Meta had abandoned plans for the Metaverse. He thinks such reports are exaggerated, especially considering the social media entity owned by Facebook will change its name to Meta in 2021, thus causing heated discussions.

In remarks at a May 11 press conference, Mendelsohn told attendees that Meta plans to launch an AI Sandbox to generate targeted ads. The executive used the New York City event to shed light on Meta's current dual strategy with the metaverse and artificial intelligence.

Mendelsohn echoed past statements by Meta CEO Zuckerberg about his pursuit of artificial intelligence and the Metaverse. He dismissed claims that Meta ended his interest in the Metaverse. Instead, he told attendees that the Metaverse is a long-term strategy and that it will take five to ten years for non-participants to understand the vision.

Mendelsohn's statement comes as a rebuttal to growing speculation that Meta is showing a connection to artificial intelligence. The focus on artificial intelligence is bound to lead to some speculation that the company led by Zuckerberg, despite its lauded name change from Facebook Inc, has given up on the development of the Metaverse.

2. The Metaverse suffered billions of dollars in losses

The 2021 rebrand has triggered a series of endless debates about Meta's plans to realize the metaverse vision. A lot of hype has defined Metaverse's ability to deliver immersive, interactive, and futuristic internet experiences, yet the hype wears off quickly.

The rapid popularity and use of generative artificial intelligence tools has led to some speculative suggestions that Meta is distancing itself from the Metaverse project. Instead, they see Meta as joining a recent popular technology trend — AI.

Mendelsohn's claims dovetail with Meta's acknowledgment that Metaverse-focused Reality Labs posted a $3.9 billion loss in *Q4. This loss represents a $1 billion increase over the loss reported in the 2022* quarter.

Mendelsohn revealed that Meta believes that generative artificial intelligence can help creators and well-known brands apply Metaverse. Meta revealed that Metaverse has integrated virtual reality technology into its Quest headset.

3. Meta launches "AI Sandbox"

At a press conference in March, Meta Chief Technology Officer Andrew Bosworth previewed the AI Sandbox as an adware suite.

This new tool will harness the potential of generative artificial intelligence in creating text. These texts will be enough to be the ad copy needed for Meta to target different groups of people.

AI Sandbox will help automate video editing and testing, Bosworth revealed. Plus, it's designed to turn text prompts into Instagram and Facebook verifiable background images.

Mendelsohn revealed that they are considering using Meta's generative artificial intelligence to build 3D spaces. He acknowledged that companies are struggling to fulfill their desire to build systems within the Metaverse.

Global business unit leaders are confident about the future, believing that the company will leverage generative artificial intelligence and machine learning to optimize the metaverse. Thus, Mendelsohn believes that individuals will be empowered through the use of these tools.

4. How does AI create value in the Metaverse

John Hegeman, Meta's VP of Monetization, echoed Mendelsohn's statement, arguing that AI will allow them to more effectively develop the Metaverse. He believes that Metaverse will provide secondary business opportunities for all parties using AI and create huge value.

Most recently, Oncyber announced an AI-based Magic Composer in March. The 3D world-building service aims to enable users to customize their digital environments through test commands powered by OpenAI's ChatGPT.

Mendelsohn believes that Meta Corporation's comprehensive vision for the Metaverse is years away from being realized. Still, the implementation plan could face a serious test now that Apple is set to enter the Metaverse hardware arena. Apple's plans for a mixed reality head-mounted display could be a game-changer.

Nick Bostrom, a professor at Microsoft's Oxford University, believes that this century we will create a general intelligence that is smarter than humans, but we need to ensure the safe development of artificial intelligence technology, otherwise risks may arise.

**General intelligence that is smarter than humans is coming, how do we lead to become "intelligence first"? **