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November 4, 2024 2:55 PM
Chinese e-commerce giant Alibaba is reportedly scaling back its metaverse operations, reducing the workforce in its Yuanjing metaverse division. This move aligns with a broader industry trend where tech companies are reallocating resources from metaverse development to artificial intelligence.
The decision to cut dozens of jobs comes as Alibaba aims to improve efficiency and adapt to the evolving tech landscape. Despite the downsizing, the Yuanjing unit will continue to provide metaverse applications, tooling, and services, maintaining a presence in Shanghai and Hangzhou.
Alibaba's restructuring mirrors actions taken by other tech giants, such as Tencent, ByteDance, and Baidu, who initially invested heavily in the metaverse but are now pivoting towards AI. The shift is driven by the growing demand for AI technologies, which have become the latest focus in the tech industry.
Earlier this year, other major companies like Meta, Microsoft, and Disney also downsized their metaverse divisions, redirecting efforts towards AI development. As the hype around virtual worlds diminishes, the tech industry is increasingly prioritizing AI to stay competitive.
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