Eyes on Apple to Join Quest for the Metaverse

Apple CEO Tim Cook attends an Apple event at their headquarters in Cupertino, California, US September 7, 2022. (Reuters)
Apple CEO Tim Cook attends an Apple event at their headquarters in Cupertino, California, US September 7, 2022. (Reuters)
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Eyes on Apple to Join Quest for the Metaverse

Apple CEO Tim Cook attends an Apple event at their headquarters in Cupertino, California, US September 7, 2022. (Reuters)
Apple CEO Tim Cook attends an Apple event at their headquarters in Cupertino, California, US September 7, 2022. (Reuters)

Apple fans are watching to see whether the iPhone-maker puts a culture-changing spin on virtual reality, even as rivals slow their march toward the metaverse.

All eyes are on whether Apple will commit to releasing long-rumored VR or augmented reality (AR) "goggles" at its annual Worldwide Developers Conference in June, with programmers and software companies eager to get a jump start on providing content.

Apple chief Tim Cook fueled the speculation this week in a GQ interview, saying AR is "exciting" and that the company has a history of going its own way with innovations, even amid doubts and criticism.

"I'm not interested in putting together pieces of somebody else's stuff," he told GQ, saying that the release of the iPhone and Apple Watch both had their serious detractors.

Cook did not confirm plans for Apple eyewear, instead focusing more broadly on the promise of VR or augmented reality and defending the time it would take to release a product to market.

"Apple is going to try to put its spin on it, and then lead others to water," Creative Strategies analyst Carolina Milanesi said of products for augmented or virtual reality (AR/VR).

"We all know that once Apple gets into something, others follow."

Apple Music concerts?

Apple's approach to the metaverse would likely be different from that of Meta, which has proclaimed it the future of the internet but slowed its substantial investments as part of overall belt tightening.

Cook's version of AR emphasizes a world in which an Apple product could "overlay" the real one with virtual imagery to create something better.

Meta's experience with the metaverse has been humbling despite it being a leader in the emergent sector.

Gear from its Quest unit accounted for more than 80 percent of the "mixed reality" headset shipments at the end of last year, according to market-tracker Counterpoint.

But less than 18 months after changing its name to Meta to reflect a metaverse priority, the Facebook giant has fired tens of thousands of staff and promised to get back to basics.

Meta's false start follows the failure of Google Glass, the decade long effort by the search engine giant that was mothballed for good last month.

"What Meta wants to do and what Apple wants to do are two different things," Milanesi said.

Meta is out to create an immersive, digital form of Facebook which relies on advertising to make money, she noted.

Apple's business model is geared to selling people premium devices and then hawk games, apps, films and more to be consumed using the hardware, the analyst said.

For example, Apple could craft virtual or augmented reality versions of its streaming television or music services that give viewers prime virtual seats to films or concerts.

Highly anticipated glasses or goggles would play to its strength while expanding its ecosystem, according to Wedbush analyst Daniel Ives.

"Apple has a golden installed 2 billion (device) users while Microsoft and Meta are swimming in enemy waters looking to go after this market opportunity," Ives said of the metaverse ambitions.

"It's a hardware play which goes into Apple's sweet spot as further penetrating its customer base."

Beware rumors

Wedbush believes Apple will unveil "Glasses" AR/VR headsets at the developers conference in June, at a price in the vicinity of $2,500, though others say $3,000.

"This comes with critics, but we believe it's the right strategic move for Apple." Ives told AFP.

Analysts Avi Greengart of Techsponential and Rob Enderle of Enderle Group advised caution chasing Apple rumors.

"After Facebook lost a large amount of money doing it, it seems an odd time to launch a consumer headset," Enderle said.

"I hope Apple sees the writing on the wall; but maybe they have a train on the tracks and it is hard to stop it."

If Apple does unveil some kind of glasses or goggles, their fate may rest on what problem they solve for consumers, Greengart reasoned.

"The Metas, Googles, and Microsofts all seem to be pulling back or retrenching," Greengart told AFP.

"It remains an open question of what the future of augmented and virtual reality will be."



Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
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Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo

Alphabet's Google has hired several key staff members from AI code generation startup Windsurf, the companies announced on Friday, in a surprise move following an attempt by its rival OpenAI to acquire the startup.

Google is paying $2.4 billion in license fees as part of the deal to use some of Windsurf's technology under non-exclusive terms, according to a person familiar with the arrangement. Google will not take a stake or any controlling interest in Windsurf, the person added.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and some members of the coding tool's research and development team will join Google's DeepMind AI division, Reuters reported.

The deal followed months of discussions Windsurf was having with OpenAI to sell itself in a deal that could value it at $3 billion, highlighting the interest in the code-generation space which has emerged as one of the fastest-growing AI applications, sources familiar with the matter told Reuters in June.

OpenAI could not be immediately reached for a comment.

The former Windsurf team will focus on agentic coding initiatives at Google DeepMind, primarily working on the Gemini project.

"We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding," Google said in a statement.

The unusual deal structure marks a win for backers for Windsurf, which has raised $243 million from investors including Kleiner Perkins, Greenoaks and General Catalyst, and was last valued at $1.25 billion one year ago, according to PitchBook.

Windsurf investors will receive liquidity through the license fee and retain their stakes in the company, sources told Reuters.

'ACQUIHIRE' DEALS

Google's surprise swoop mirrors its deal in August 2024 to hire key employees from chatbot startup Character.AI.

Big Tech peers, including Microsoft, Amazon and Meta, have similarly taken to these so-called acquihire deals, which some have criticized as an attempt to evade regulatory scrutiny.

Microsoft struck a $650 million deal with Inflection AI in March 2024, to use the AI startup's models and hire its staff, while Amazon hired AI firm Adept's co-founders and some of its team last June.

Meta took a 49% stake in Scale AI in June in the biggest test yet of this increasing form of business partnerships.

Unlike acquisitions that would give the buyer a controlling stake, these deals do not require a review by US antitrust regulators. However, they could probe the deal if they believe it was structured to avoid those requirements or harm competition. Many of the deals have since become the subject of regulatory probes.

The development comes as tech giants, including Alphabet and Meta, aggressively chase high-profile acquisitions and offer multi-million-dollar pay packages to attract top talent in the race to lead the next wave of AI.

Windsurf's head of business, Jeff Wang, has been appointed its interim CEO, and Graham Moreno, vice president of global sales, will be president, effective immediately.

The majority of Windsurf's roughly 250 employees will remain with the company, which has announced plans to prioritize innovation for its enterprise clients.