alt Hacker NewsInteresting, cutting way back in the product they renamed the whole company for.
They feel a bit directionless to me. They are still making money but even their AI attempt feels half hearted. I think they are really trying but I’m not sure they can build the engineering muscle to move in new areas with the brand damage they’ve sustained.
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I was at Intel for a while and there was one glaring problem - they have one product that spins off a huge amount of cash. This means a few things: First, that one product is really where the things that matter happen. But second, they have all this money and they don't know what to do with it, they can't spend it all on their core product because that looks terrible - they're already throwing off money, investing more probably just makes your company look bad (you're spending more to get the same revenue). SO instead you have to take that money and make bets. But not just any bets. You need a bet that (a) matters if it pays off, and (b) looks favourable compared to the core business. So you buy Mcafee and Altera and MobilEye, 5G was the future once...
So to take the Meta example, they need something that is going to have revenue upside similar to Meta advertising revenue (one of the most profitable things in the universe), and that has better margins that the advertising business (basically impossible).So the only logical thing to do is to make grotesquely large bets on things that are extremely speculative. You can't bet on things that are well known - because nothing known has the properties from earlier that you're looking for, and you can't bet small because you've got to convince people you're the pay off is of a similar size to your existing business.
In Intel's case they lost focus on the core business and so that died and their other bets didn't matter because the core business was dead. With Meta the core business in't dead, but it's only a matter of time before it's seriously threatened and so they're going to attack that threat with everything they've got - and they have a tonne of resources.
> Interesting, cutting way back in the product they renamed the whole company for.
It was clearly the wrong bet. He pumped something like $100B into the endeavour (Meta Quest / VR / Horizons) and it is just slowly dying as we speak. He has to give up on it, although I am sure it will be called a "pivot" into AR glasses.
I'd like to think that the top minds working on AI have a higher purpose than to get the next generation hooked to a digital morphine drip. Serving soap cutting videos and giving teen girls body dysmorphia isn't a very compelling mission.
Though I'm sure many are mercenaries and will work for whoever pays the most.
They had the money to try something, did it, didn't work. Not unheard of. Still a >$1T company.
Can we all say a big thank you to Neal Stephenson for inspiring Zuckerberg to light tens of billions of dollars on fire in this stupid quest? Imagine what kinds of anticompetitive acquisitions or further privacy-invading tech they might’ve spent that on instead.
It makes sense to rebrand anyway, because I'm sure they don't want people to only think of "that social media site" for all of their other ventures. Just like Google rebranding as alphabet
The Meta/Oculus bet was never about VR or gaming. It is to solve Zuck's greatest fear of being beholden to platforms controlled by others. What it was supposed to be was basically what Microsoft missed out on with mobile, losing to Google and Apple. VR and AR could be that next platform to own and control. They would love to have all the data that Google and Apple enjoy. That's what Quest -> Horizon was about, change a gaming device into a mainstream entertainment and work-friendly one. This is all driven out of fear and lack of control. It would suck for them if OpenAI owns the most successful personal AI device.