The Battle to Build a Child-friendly Metaverse

Campaigners and experts warn that the wider ecosystem of the metaverse needs to start acting to ensure child safety Eric PIERMONT AFP
Campaigners and experts warn that the wider ecosystem of the metaverse needs to start acting to ensure child safety Eric PIERMONT AFP
TT

The Battle to Build a Child-friendly Metaverse

Campaigners and experts warn that the wider ecosystem of the metaverse needs to start acting to ensure child safety Eric PIERMONT AFP
Campaigners and experts warn that the wider ecosystem of the metaverse needs to start acting to ensure child safety Eric PIERMONT AFP

As a young woman straps on her vest and headset and becomes immersed in a virtual world, Mainak Chaudhuri talks excitedly about the potential of the technology.

"This is the first step towards the metaverse," Chaudhuri of French start-up Actronika told AFP at this week's VivaTech trade show in Paris.

The vest can give users the sensation of being buffeted by the wind or even feel a monster's breath on their back, and it can be used to enhance movie watching, education or gaming, said AFP.

It is a family-friendly vision of the 3D immersive internet, now widely known as the metaverse, and sits well with some interactive experiences already widely available for children -- like virtual trips to museums.

But campaigners and experts are increasingly warning that the wider ecosystem needs to start acting on child safety to ensure the benign vision is realized.

"The biggest challenge is kids are getting exposed to content that is not intended for them," said Kavya Pearlman, whose NGO XR Safety Initiative campaigns to ensure immersive technology will be safe for everyone.

The problems she envisages range from children being exposed to sexual and violent material, to worries over young people being used as content creators or having inappropriate contact with adults.

Even though the metaverse has not yet been widely adopted and the technology is still in development, early users have already brought to light serious issues.

One woman's allegation that her avatar was sexually assaulted in the metaverse sparked global outrage.

Worries about the future of the technology have only grown as the economic opportunities have become clearer.

'Colossal' money
Metaverse-linked investments topped $50 billion last year, according to research firm McKinsey, which predicts the figure could more than double this year.

"We're talking about absolutely colossal amounts of money, that's three times more than the investment in artificial intelligence in 2017," McKinsey partner Eric Hazan told AFP.

Chief among the investors is tech giant Meta, which owns the likes of Instagram, Facebook and WhatsApp.

The firm has already rolled out measures to give parents more control over the content their children interact with while using VR headsets.

Meta and many of its competitors market immersive products with a lower age limit of 13 -- though it is widely accepted that younger children will use the tech.

Pearlman raises a broader concern that very little is known about the possible effects on young people's development.

"Organizations have not yet validated these experiences from a scientific perspective," she said.

"Yet they are allowing kids to be exposed to these new technologies, practically experimenting on children's developing brains."

The metaverse has shifted the paradigm, according to Valentino Megale, a neuropharmacologist who researches the issue.

While the public has so far merely consumed what others have created, in the metaverse "we are going to be part of the digital content", he said.

"This makes everything that we experience in that world more compelling," he told the RightsCon digital rights conference last week, adding that it was particularly true for children.

Experts worry that the industry needs scrutiny before the rot sets in.

'Ethical basis'
The solution, they argue, is to make sure the builders of these new virtual worlds instil child protection measures into the ethos of their work.

In other words, each piece of software and hardware should be constructed on the understanding that children might use it and will need safeguarding.

"We are potentially going to have a huge impact on their behavior, their identity, their emotions, their psychology in the exact moment when they are forming their personality," said Megale.

"You need to provide an ethical basis and safety by design from the beginning."

One of the most controversial areas of product design is the kind of suit that will allow users to feel all sorts of sensations -- even pain.

Such suits are already being manufactured, simulating pain through electric shocks.

The products are intended for military or other professional training.

Chaudhuri said the products developed by his firm Actronika use vibrations rather than electric shocks and were perfectly safe for anyone to use.

"We're about engaging the audience and not necessarily doing a real-time firefighting scenario or a battlefield scenario," he said.

"We don't cause pain."



Nvidia Boss Insists 'Huge' Investment in OpenAI on Track

Nvidia CEO Jensen Huang insists the US tech giant is going to make 'a huge investment in OpenAI'. Patrick T. Fallon / AFP/File
Nvidia CEO Jensen Huang insists the US tech giant is going to make 'a huge investment in OpenAI'. Patrick T. Fallon / AFP/File
TT

Nvidia Boss Insists 'Huge' Investment in OpenAI on Track

Nvidia CEO Jensen Huang insists the US tech giant is going to make 'a huge investment in OpenAI'. Patrick T. Fallon / AFP/File
Nvidia CEO Jensen Huang insists the US tech giant is going to make 'a huge investment in OpenAI'. Patrick T. Fallon / AFP/File

Nvidia chief executive Jensen Huang has insisted the US tech giant will make a "huge" investment in OpenAI and dismissed as "nonsense" reports that he is unhappy with the generative AI star.

Huang made the remarks late Saturday in Taipei after the Wall Street Journal reported that Nvidia's plan to invest up to $100 billion in OpenAI had been put on ice, said AFP.

Nvidia announced the plan in September to invest $100 billion in OpenAI, building infrastructure for next-generation artificial intelligence.

The Wall Street Journal, citing unnamed sources, said some people inside Nvidia had expressed doubts about the deal and that the two sides were rethinking the partnership.

"That's complete nonsense. We are going to make a huge investment in OpenAI," Huang told journalists, when asked about reports that he was unhappy with OpenAI.

Huang insisted that Nvidia was going ahead with its investment in OpenAI, describing it as "one of the most consequential companies of our time".

"Sam is closing the round, and we will absolutely be involved in the round," Huang said, referring to OpenAI chief executive Sam Altman.

"We will invest a great deal of money, probably the largest investment we've ever made."

Nvidia has come to dominate spending on the processors needed for training and operating the large language models (LLM) behind chatbots like OpenAI's ChatGPT or Google Gemini.

Sales of its graphics processing units (GPUs) -- originally developed for 3D gaming -- powered the company's market cap to over $5 trillion in October, although the figure has since fallen back by more than $600 billion.

LLM developers like OpenAI are directing much of the mammoth investment they have received into Nvidia's products, rushing to build GPU-stuffed data centers to serve an anticipated flood of demand for AI services.


Meta Shares Skyrocket, Microsoft Slides on Wall Street after Earnings

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
TT

Meta Shares Skyrocket, Microsoft Slides on Wall Street after Earnings

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson

Shares in Meta skyrocketed by 10 percent at opening on Wall Street on Thursday, a day after the social media giant posted better than expected earnings as the company invests heavily in artificial intelligence.

Microsoft, whose earnings disappointed analysts, saw its share price tumble by 10 percent, with investors showing concern for the return on investment for the software giant's spending on AI.


Samsung Logs Best-ever Profit on AI Chip Demand

South Korean tech giant Samsung Electronics posted record quarterly profits on Thursday, riding strong market demand for its artificial intelligence chips. Jung Yeon-je / AFP/File
South Korean tech giant Samsung Electronics posted record quarterly profits on Thursday, riding strong market demand for its artificial intelligence chips. Jung Yeon-je / AFP/File
TT

Samsung Logs Best-ever Profit on AI Chip Demand

South Korean tech giant Samsung Electronics posted record quarterly profits on Thursday, riding strong market demand for its artificial intelligence chips. Jung Yeon-je / AFP/File
South Korean tech giant Samsung Electronics posted record quarterly profits on Thursday, riding strong market demand for its artificial intelligence chips. Jung Yeon-je / AFP/File

South Korean tech giant Samsung Electronics posted record quarterly profits Thursday, riding massive market demand for the memory chips that power artificial intelligence.

A global frenzy to build AI data centers and develop the fast-evolving technology has sent orders for advanced high bandwidth memory microchips soaring.

That is also pushing up prices for less flashy chips used in consumer electronics -- threatening higher prices for phones, laptops and other devices worldwide.

In the quarter to December 2025, Samsung said it saw "its highest-ever quarterly consolidated revenue at KRW 93.8 trillion (US$65.5 billion)", a quarter-on-quarter increase of nine percent.

"Operating profit was also an all-time high, at KRW 20.1 trillion," the company said.

The dazzling earnings came a day after a key competitor, South Korean chip giant SK hynix, said operating profit had doubled last year to a record high, also buoyed by the AI boom.

The South Korean government has pledged to become one of the top three AI powers, behind the United States and China, with Samsung and SK hynix among the leading producers of high-performance memory.

Samsung said Thursday it expects "AI and server demand to continue increasing, leading to more opportunities for structural growth".

Annual revenue stood at 333.6 trillion won, while operating profit came in at 43.6 trillion won. Sales for the division that oversees its semiconductor business rose 33 percent quarter-on-quarter.

The company pointed to a $33.2 billion investment in chip production facilities -- pledging to continue spending in "transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand".

- 'Clearly back' -

Major electronics manufacturers and industry analysts have warned that chipmakers focusing on AI sales will cause higher retail prices for consumer products across the board.

This week US chip firm Micron said it was building a $24 billion plant in Singapore in response to AI-driven demand that has caused a global shortage of memory components.

SK hynix announced Wednesday that its operating profit had doubled last year to a record 47.2 trillion won.

The company's shares have surged some 220 percent over the past six months, while Samsung Electronics has risen about 130 percent, part of a huge global tech rally fueled by optimism over AI.

Both companies are on the cusp of producing next-generation high-bandwidth "HBM4" chips for AI data centers, with Samsung reportedly due to start making them in February.

American chip giant Nvidia -- now the world's most valuable company -- is expected to be one of Samsung's customers for HBM4 chips.

But Nvidia has reportedly allocated around 70 percent of its HBM4 demand to SK hynix for 2026, up from the market's previous estimate of 50 percent.

"Samsung is clearly back and we are expecting them to show a significant turnaround with HBM4 for Nvidia's new products -- helping them move past last year's quality issues," Hwang Min-seong, research director at market analysis firm Counterpoint, told AFP.

But SK still "maintains a market lead in both quality and supply" of a number of key components, including Dynamic Random Access Memory chips used in AI servers, he said.

SK also this week said it will set up an "AI solutions firm" in the United States, committing $10 billion and weighing investments in US companies.