Yann LeCun says his unnamed AI startup will not receive financial backing from Meta, will focus on advanced AI world models, and hints it will be Paris-based (Benoit Berthelot/Bloomberg)

Meta Platforms Inc. is reportedly planning significant budget cuts to its metaverse initiatives, potentially reducing funding by up to 30% in 2026, which may lead to layoffs as early as January. This decision reflects ongoing challenges in the company's ambitious metaverse strategy under CEO Mark Zuckerberg.

Meta Platforms Inc. has successfully recruited Alan Dye, the leading design executive from Apple Inc., marking a significant shift in leadership dynamics within both companies. Dye has been instrumental in shaping Apple's user interface over the past decade, and his transition to Meta is seen as a strategic move to bolster the company's design capabilities.

Mark Zuckerberg has announced the establishment of a new creative studio within Meta's Reality Labs, which will be led by Alan Dye, a former Apple design executive, who will also be joined by Billy Sorrentino. This move is part of Meta's strategy to enhance its design capabilities and innovation in the realm of virtual and augmented reality.

Alan Dye, Apple’s design lead, is set to join Meta, marking a significant shift in leadership for both companies. This transition comes at a time when Meta is undergoing changes in its AI initiatives, following the departure of its Chief AI Scientist, Dr. Yann LeCun, who has been with the company for 12 years.

Snowflake Inc. reported a 29% year-over-year increase in Q3 product revenue, reaching $1.16 billion. However, the company forecasted a Q4 adjusted operating income margin that fell below analysts' expectations, leading to a more than 7% drop in its stock price after hours. This outlook has raised concerns about the profitability of its artificial intelligence initiatives.

Dan Ives, the global head of technology research at Wedbush Securities, stated that it is too early to declare an AI bubble, emphasizing the U.S. commitment to maintaining its chip market against competitors like Huawei and Nvidia. This perspective was shared during an interview on Bloomberg The Close with Romaine Bostick.

Some YouTube creators are increasingly producing low-effort, low-quality AI-generated videos, referred to as 'AI Slop,' targeting viewers under two years old. This trend has raised concerns among critics regarding the appropriateness and educational value of such content for infants. Bloomberg's Alex Levine discussed this phenomenon on 'Bloomberg Tech.'

Okta CEO Todd McKinnon highlighted the company's optimistic outlook driven by advancements in artificial intelligence (AI) during an interview on Bloomberg Tech. He emphasized the significant opportunities AI presents for enhancing software solutions and driving growth.