Meta set to slash spending on metaverse as Zuckerberg shifts focus to AI

Apple has appointed Meta's Newstead as its new general counsel, a move that comes amid significant executive changes within the company. This transition reflects Apple's ongoing efforts to strengthen its leadership team in response to evolving market dynamics.

The latest Market Talks provide insights into the performance of major tech companies, including Snowflake, Salesforce, Meta, and C3.ai, highlighting their recent earnings and market reactions. Salesforce reported a strong Q3 2026 performance, exceeding forecasts, while Snowflake faced challenges with its revenue outlook, leading to a decline in share price despite some positive earnings reports.

As inflation continues to impact consumer spending, Americans are increasingly turning to dollar stores like Dollar General and Dollar Tree for affordable shopping options. This trend highlights a shift in purchasing behavior, particularly among wealthier households seeking value amidst economic pressures.

OpenAI's CEO Sam Altman has declared a 'code red' to prioritize improvements to ChatGPT amid intensifying competition from rivals like Google's Gemini 3, which has rapidly gained traction in the AI market. This internal memo reflects a critical moment for OpenAI as it seeks to maintain its leadership position in artificial intelligence.

Meta has announced a significant reduction in resources allocated to its metaverse initiatives, with CEO Mark Zuckerberg indicating that the savings will be redirected towards other futuristic projects within Reality Labs. This decision marks a strategic shift in the company's focus amid evolving market conditions.

The recent speech by the Bank of Japan (BoJ) governor has raised concerns among investors regarding a potential rise in Japanese interest rates, which could lead to the unwinding of the yen carry trade. This situation has sparked worries about its impact on global markets, particularly as Japanese 10-year bond yields have reached their highest levels since 2007.

The U.S. may be misaligning its artificial intelligence (AI) strategy by focusing on large, complex models, while China is successfully leveraging smaller, cost-effective models like DeepSeek, which could yield better results in the competitive AI landscape. This shift in approach highlights a potential divergence in technological priorities between the two nations.

US stocks experienced small gains on Thursday, buoyed by stronger-than-expected jobs data, which did not alter expectations for a Federal Reserve rate cut next week. Meta's stock surged due to budget cuts, reflecting a positive response from investors.