Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Alibaba restructures metaverse unit with $60M focus shift

Alibaba restructures metaverse unit with $60M focus shift

GrafaGrafa2024/11/05 14:00
By:Mahathir Bayena

Alibaba is restructuring its metaverse division, Yuanjing, resulting in layoffs in Shanghai and Hangzhou as the company narrows its focus on targeted metaverse applications and customer services, according to the South China Morning Post, which is owned by Alibaba.

The downsizing impacts “dozens” of employees in a unit that once employed hundreds and reportedly attracted “billions of yuan” in investments.

Despite this reduction, Yuanjing will continue operating with an emphasis on metaverse tools and services for end users.

This shift reflects a trend among tech firms adjusting their investments in the metaverse as they allocate more resources toward artificial intelligence (AI).

Meta Platforms, for example, previously restructured its Reality Labs division, while Baidu redirected its focus following the launch of AI tools like ChatGPT.

Alibaba has continued to invest in the metaverse, leading a $60 million funding round in Nreal, a Chinese augmented reality (AR) company.

Industry experts view AR, virtual reality (VR), and mixed reality as gateways for future metaverse engagement.

Yuanjing, in line with this, developed a cloud-based operating system to support metaverse applications in gaming and industrial sectors.

The restructuring follows broader tech trends prioritising AI, as seen with Baidu and Meta’s recent moves.

Yuanjing’s focus will now shift, although Alibaba is maintaining its presence in the metaverse with a leaner approach.

Global Markets Insights data suggests that the industrial metaverse market, valued at $22.4 billion in 2023, may grow at a compound annual growth rate of 29.5% from 2024 to 2032.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Ethereum Sees $48M Purchase From Trump-Endorsed Crypto Initiative: Future Predictions

World Liberty's Significant Ethereum Purchase: Increasing Treasury Holdings and Attracting Institutional Support

Coineagle2025/01/22 09:55

Will Q1 Trends Propel Ethereum Towards the $3500 Milestone?

Whale Accumulation, Q1 Market Trends, and Ethereum Foundation Shifts: Key Drivers for Ethereum's Potential Surge to $3500

Coineagle2025/01/22 09:55

SEC Appoints Hester Peirce to Cryptocurrency Task Force: The Bullish Development Everyone Expected Could Be Coming Soon

The SEC has appointed cryptocurrency advocate Hester Peirce to head its newly formed cryptocurrency task force. So what happens now?

Bitcoinsistemi2025/01/22 09:44

Investment Giant BlackRock Continues Its Leadership in Both Bitcoin and Ethereum ETFs! Here Are the Details

Both Bitcoin and Ethereum continue to attract institutional capital, with spot exchange-traded funds reporting significant net inflows.

Bitcoinsistemi2025/01/22 09:44