China’s e-commerce giant Alibaba is reportedly shrinking its ambitions in amid rapid growth in AI. Alibaba is cutting dozens of positions within its tuple, according to the China Morning Post (SCMP), with sources saying the company aiming to reorganize and improve efficiency. Previously, Alibaba invested $60 million (about Rs 5,040 crore) as Chinese AR glasses maker Nreal, as part of its Metaverse initiative.
Alibaba’s meta-unit is reportedly called Yuanjing, which was established in 2021. According to reports, the latest work of Alibaba Yuanjing’s department is affecting teams in Shanghai and Hangzhou.
The exact number of layoffs within Alibaba Yuan units has not been disclosed and the company has not issued a formal statement on the matter.
According to a report by SCMP, “billions of yuan” have been poured into Alibaba’s dollar unit, which employs “hundreds” of workers.
Metaverse is a virtual ecosystem powered by blockchain, where users interact as digital avatars. In these immersive, lifelike digital worlds, people can socialize, work, shop, play games and enjoy entertainment from the comfort of their homes.
In recent years, excitement about the metavisual body has fluctuated significantly. Brands like Lamborghini, Samsung and Apple have explored meta-evaluation as a way to interact with younger audiences.
Mark Zuckerberg’s dollar has been losing the Elemental Reality Lab in its metagroup since its launch in 2020, and the department reported that the lab had recently declined further as of April. Similarly, Baidu in China shifted its focus from meta-representative to artificial intelligence. Last year, its AI development head resigned after Baidu’s hub for generating AI.
The report notes that despite layoffs, Alibaba is expected to retain its Yuanjing unit, which will continue to focus on research and development with meta-use cases.
Back in June 2023, blockchain companies near the foundation established a partnership with China’s Alibaba Group to help developers build collaborations on their blockchain infrastructure.
