Apple Unveils a $3,500 Headset as it Wades into the World of Virtual Reality 

Members of the media inspect the new Apple Vision Pro headset during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. (Getty Images/AFP)
Members of the media inspect the new Apple Vision Pro headset during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. (Getty Images/AFP)
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Apple Unveils a $3,500 Headset as it Wades into the World of Virtual Reality 

Members of the media inspect the new Apple Vision Pro headset during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. (Getty Images/AFP)
Members of the media inspect the new Apple Vision Pro headset during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California. (Getty Images/AFP)

Apple on Monday unveiled a long-rumored headset that will place its users between the virtual and real world, while also testing the technology trendsetter's ability to popularize new-fangled devices after others failed to capture the public's imagination.

After years of speculation, Apple CEO Tim Cook hailed the arrival of the sleek goggles — dubbed "Vision Pro" — at the company's annual developers conference held on a park-like campus in Cupertino, California, that Apple's late co-founder Steve Jobs helped design. The device will be capable of toggling between virtual reality, or VR, and augmented reality, or AR, which projects digital imagery while users still see can see objects in the real world.

“This marks the beginning of a journey that will bring a new dimension to powerful personal technology," Cook told the crowd.

Although Apple executives provided an extensive preview of the headset's capabilities during the final half hour of Monday's event, consumers will have to wait before they can get their hands on the device and prepare to pay a hefty price to boot. Vision Pro will sell for $3,500 once it's released in stores early next year.

“It's an impressive piece of technology, but it was almost like a tease,” said Gartner analyst Tuong Nguyen. “It looked like the beginning of a very long journey."

Instead of merely positioning the goggles as another vehicle for exploring virtual worlds or watching more immersive entertainment, Apple framed the Vision Pro as the equivalent of owning a ultrahigh-definition TV, surround-sound system, high-end camera, and state-of-the art camera bundled into a single piece of hardware.

“We believe it is a stretch, even for Apple, to assume consumers would pay a similar amount for an AR/VR headset as they would for a combination of those products,” D.A. Davison Tom Forte wrote in a Monday research note.

Despite such skepticism, the headset could become another milestone in Apple’s lore of releasing game-changing technology, even though the company hasn’t always been the first to try its hand at making a particular device.

Apple's lineage of breakthroughs dates back to a bow-tied Jobs peddling the first Mac in 1984 —a tradition that continued with the iPod in 2001, the iPhone in 2007, the iPad in 2010, the Apple Watch in 2014 and its AirPods in 2016.

The company emphasized that it drew upon its past decades of product design during the years it spent working on the Vision Pro, which Apple said involved more than 5,000 different patents.

The headset will be equipped with 12 cameras, six microphones and a variety of sensors that will allow users to control it and various apps with just their eyes and hand gestures. Apple said the experience won't cause the recurring nausea and headaches that similar devices have in the past. The company also developed a technology to create a three-dimensional digital version of each user to display during video conferencing.

Although Vision Pro won't require physical controllers that can be clunky to use, the goggles will have to either be plugged into a power outlet or a portable battery tethered to the headset — a factor that could make it less attractive for some users.

“They’ve worked hard to make this headset as integrated into the real world as current technology allows, but it’s still a headset,” said Insider Intelligence analyst Yory Wurmser, who nevertheless described the unveiling as a “fairly mind-blowing presentation.”

Even so, analysts are not expecting the Vision Pro to be a big hit right away. That's largely because of the hefty price, but also because most people still can't see a compelling reason to wear something wrapped around their face for an extended period of time.

If the Vision Pro turns out to be a niche product, it would leave Apple in the same bind as other major tech companies and startups that have tried selling headsets or glasses equipped with technology that either thrusts people into artificial worlds or projects digital images onto scenery and things that are actually in front of them — a format known as “augmented reality.”

Facebook founder Mark Zuckerberg has been describing these alternate three-dimensional realities as the “metaverse.” It's a geeky concept that he tried to push into the mainstream by changing the name of his social networking company to Meta Platforms in 2021 and then pouring billions of dollars into improving the virtual technology.

But the metaverse largely remains a digital ghost town, although Meta's virtual reality headset, the Quest, remains the top-selling device in a category that so far has mostly appealed to video game players looking for even more immersive experiences. Cook and other Apple executives avoided referring to the metaverse in their presentations, describing the Vision Pro as the company's first leap into “spatial computing” instead.

The response to virtual, augmented and mixed reality has been decidedly ho-hum so far. Some of the gadgets deploying the technology have even been derisively mocked, with the most notable example being Google's internet-connected glasses released more than a decade ago.

Microsoft also has had limited success with HoloLens, a mixed-reality headset released in 2016, although the software maker earlier this year insisted it remains committed to the technology.

Magic Leap, a startup that stirred excitement with previews of a mixed-reality technology that could conjure the spectacle of a whale breaching through a gymnasium floor, had so much trouble marketing its first headset to consumers in 2018 that it has since shifted its focus to industrial, health care and emergency uses.

Wedbush Securities analyst Dan Ives estimated Apple will sell just 150,000 of the headsets during its first year on the market before escalating to 1 million headsets sold during the second year — a volume that would make the goggles a mere speck in the company's portfolio.

By comparison, Apple sells more than 200 million of its marquee iPhones a year. But the iPhone wasn't an immediate sensation, with sales of fewer than 12 million units in its first full year on the market.



Anthropic Says Looking to Power European Tech with Hiring Push

As the AI race heats up, so does the race to find talent in the sector, which is currently dominated by US and Chinese companies. Fabrice COFFRINI / AFP/File
As the AI race heats up, so does the race to find talent in the sector, which is currently dominated by US and Chinese companies. Fabrice COFFRINI / AFP/File
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Anthropic Says Looking to Power European Tech with Hiring Push

As the AI race heats up, so does the race to find talent in the sector, which is currently dominated by US and Chinese companies. Fabrice COFFRINI / AFP/File
As the AI race heats up, so does the race to find talent in the sector, which is currently dominated by US and Chinese companies. Fabrice COFFRINI / AFP/File

American AI giant Anthropic aims to boost the European tech ecosystem as it expands on the continent, product chief Mike Krieger told AFP Thursday at the Vivatech trade fair in Paris.

The OpenAI competitor wants to be "the engine behind some of the largest startups of tomorrow... (and) many of them can and should come from Europe", Krieger said.

Tech industry and political leaders have often lamented Europe's failure to capitalize on its research and education strength to build heavyweight local companies -- with many young founders instead leaving to set up shop across the Atlantic.

Krieger's praise for the region's "really strong talent pipeline" chimed with an air of continental tech optimism at Vivatech.

French AI startup Mistral on Wednesday announced a multibillion-dollar tie-up to bring high-powered computing resources from chip behemoth Nvidia to the region.

The semiconductor firm will "increase the amount of AI computing capacity in Europe by a factor of 10" within two years, Nvidia boss Jensen Huang told an audience at the southern Paris convention center.

Among 100 planned continental hires, Anthropic is building up its technical and research strength in Europe, where it has offices in Dublin and non-EU capital London, Krieger said.

Beyond the startups he hopes to boost, many long-standing European companies "have a really strong appetite for transforming themselves with AI", he added, citing luxury giant LVMH, which had a large footprint at Vivatech.

'Safe by design'

Mistral -- founded only in 2023 and far smaller than American industry leaders like OpenAI and Anthropic -- is nevertheless "definitely in the conversation" in the industry, Krieger said.

The French firm recently followed in the footsteps of the US companies by releasing a so-called "reasoning" model able to take on more complex tasks.

"I talk to customers all the time that are maybe using (Anthropic's AI) Claude for some of the long-horizon agentic tasks, but then they've also fine-tuned Mistral for one of their data processing tasks, and I think they can co-exist in that way," Krieger said.

So-called "agentic" AI models -- including the most recent versions of Claude -- work as autonomous or semi-autonomous agents that are able to do work over longer horizons with less human supervision, including by interacting with tools like web browsers and email.

Capabilities displayed by the latest releases have raised fears among some researchers, such as University of Montreal professor and "AI godfather" Yoshua Bengio, that independently acting AI could soon pose a risk to humanity.

Bengio last week launched a non-profit, LawZero, to develop "safe-by-design" AI -- originally a key founding promise of OpenAI and Anthropic.

'Very specific genius'

"A huge part of why I joined Anthropic was because of how seriously they were taking that question" of AI safety, said Krieger, a Brazilian software engineer who co-founded Instagram, which he left in 2018.

Anthropic is still working on measures designed to restrict their AI models' potential to do harm, he added.

But it has yet to release details of its "level 4" AI safety protections foreseen for still more powerful models, after activating ASL (AI Safety Level) 3 to corral the capabilities of May's Claude Opus 4 release.

Developing ASL 4 is "an active part of the work of the company", Krieger said, without giving a potential release date.

With Claude 4 Opus, "we've deployed the mitigations kind of proactively... safe doesn't have to mean slow, but it does mean having to be thoughtful and proactive ahead of time" to make sure safety protections don't impair performance, he added.

Looking to upcoming releases from Anthropic, Krieger said the company's models were on track to match chief executive Dario Amodei's prediction that Anthropic would offer customers access to a "country of geniuses in a data center" by 2026 or 2027 -- within limits.

Anthropic's latest AI models are "genius-level at some very specific things", he said.

"In the coming year... it will continue to spike in particular aspects of things, and still need a lot of human-in-the-loop coordination," he forecast.