Meta has paused its third-party Horizon OS headset program, effectively canceling planned VR headsets from Asus and Lenovo as it refocuses on "building the world-class first-party hardware and software needed to advance the VR market." Road to VR reports: A little over a year and a half ago, Meta made an "industry-altering announcement," as I called the move in my reporting: the company was rebranding the Quest operating system to 'Horizon OS' and announced it was working with select partners to launch third-party VR headsets powered by the operating system. Meta specifically named Asus and Lenovo as the first partners it was working with to build new Horizon OS headsets. Asus was said to be building an "all-new performance gaming headset," while Lenovo was purportedly working on "mixed reality devices for productivity, learning, and entertainment."

But as we've now learned, neither headset is likely to see the light of day. Meta say it has frozen the third-party Horizon OS headset program. "We have paused the program to focus on building the world-class first-party hardware and software needed to advance the VR market," a Meta spokesperson told Road to VR. "We're committed to this for the long term and will revisit opportunities for 3rd-party device partnerships as the category evolves."

A Reuters investigation found that Meta knowingly tolerated large volumes of scam and illegal ads from China worth billions in revenue. Reuters reports: Though China's authoritarian government bans use of Meta social media by its citizens, Beijing lets Chinese companies advertise to foreign consumers on the globe-spanning platforms. As a result, Meta's advertising business was thriving in China, ultimately reaching over $18 billion in annual sales in 2024, more than a tenth of the company's global revenue. But Meta calculated that about 19% of that money -- more than $3 billion -- was coming from ads for scams, illegal gambling, pornography and other banned content, according to internal Meta documents reviewed by Reuters.

The documents are part of a cache of previously unreported material generated over the past four years by teams including Meta's finance, lobbying, engineering and safety divisions. The cache reveals Meta's efforts over that period to understand the scale of abuse on its platforms and the company's reluctance to introduce fixes that could undermine its business and revenues. The documents show that Meta believed China was the country of origin of roughly a quarter of all ads for scams and banned products on Meta's platforms worldwide. Victims ranged from shoppers in Taiwan who purchased bogus health supplements to investors in the United States and Canada who were swindled out of their savings. "We need to make significant investment to reduce growing harm," Meta staffers warned in an internal April 2024 presentation to leaders of its safety operations.

To that end, Meta created an anti-fraud team that went beyond previous efforts to monitor scams and other banned activity from China. Using a variety of stepped-up enforcement tools, it slashed the problematic ads by about half during the second half of 2024 -- from 19% to 9% of the total advertising revenue coming from China. Then Meta Chief Executive Mark Zuckerberg weighed in. "As a result of Integrity Strategy pivot and follow-up from Zuck," a late 2024 document notes, the China ads-enforcement team was "asked to pause" its work. Reuters was unable to learn the specifics of the CEO's involvement or what the so-called "Integrity Strategy pivot" entailed. But after Zuckerberg's input, the documents show, Meta disbanded its China-focused anti-scam team. It also lifted a freeze it had introduced on granting new Chinese ad agencies access to its platforms. One document shows that Meta shelved yet other anti-scam measures that internal tests had indicated would be effective. The document didn't detail the specifics of those measures.

Meta took these steps even as an outside consultant it hired produced research that warned "Meta's own behavior and policies" were fostering systemic corruption in the Chinese market for ads targeting users in other countries, additional documents show. The upshot: Within a few months of Meta's brief crackdown, a new crop of Chinese advertising agencies was flooding Facebook and Instagram with prohibited ads. By mid-2025, banned ads climbed back to about 16% of Meta's China revenue. Rob Leathern, who was a senior director of product management at Facebook until 2020 and is no longer at the company, said the scale of predatory advertising revealed in the documents represents a major breakdown in consumer protections at the social media giant. "The levels that you're talking about are not defensible," he said of the percentage of abusive ads. "I don't know how anyone could think this is okay."

An anonymous reader quotes a report from Reuters: Meta's proposal to use less personal data for targeted advertising in its pay-or-consent model that will be rolled out next month won the approval of EU antitrust regulators on Monday, signaling the company will not face daily fines after all. [...] The U.S. tech giant has been locked in discussions with the European Commission after getting hit with a $233 million fine in April for breaching the Digital Markets Act aimed at reining in the power of Big Tech. The violation covered Facebook and Instagram in the period from November 2023 to November 2024, after which Meta tweaked its pay-or-consent model to use less personal data for targeted advertising.

The EU executive has been examining the changes to see if they comply with the DMA, with Meta risking daily fines of as much as 5% of its average daily worldwide turnover if found to be still in breach of the law. The tweaks are in wording, design and transparency to remind users of the two options. Meta did not plan on any substantial changes to its November proposal despite the risk of EU fines, people with direct knowledge of the matter had told Reuters. The Commission, which acts as the EU competition enforcer, acknowledged Meta's November proposal, saying that it will monitor the new ad model and seek feedback, with no more talk of periodic fines. "Meta will give users the effective choice between consenting to share all their data and seeing fully personalized advertising, and opting to share less personal data for an experience with more limited personalized advertising," the Commission said in a statement.

Meta has officially confirmed it is shifting investment away from the metaverse and VR toward AI-powered smart glasses, following a Bloomberg report of an up to 30% budget cut for Reality Labs. "Within our overall Reality Labs portfolio we are shifting some of our investment from Metaverse toward AI glasses and Wearables given the momentum there," a statement from Meta reads. "We aren't planning any broader changes than that." From the report: Following Bloomberg's report, other mainstream news outlets including The New York Times, The Wall Street Journal, and Business Insider have published their own reports corroborating the general claim, with slightly differing details...

Business Insider's report suggests that the cuts will primarily hit Horizon Worlds, and that employees are facing "uncertainty" about whether this will involve layoffs. One likely cut BI's report mentions is the funding for third-party studios to build Horizon Worlds content. The New York Times report, on the other hand, seems more definitive in stating that these cuts will come via layoffs. The Reality Labs division "has racked up more than $70 billion in losses since 2021," notes Fortune in their reporting, "burning through cash on blocky virtual environments, glitchy avatars, expensive headsets, and a user base of approximately 38 people as of 2022."

Meta is acquiring AI wearable startup Limitless, maker of a pendant that records conversations and generates summaries. "We're excited that Limitless will be joining Meta to help accelerate our work to build AI-enabled wearables," a Meta spokesperson said in a statement. CNBC reports: Limitless CEO Dan Siroker revealed the deal on Friday via a corporate blog post but did not disclose the financial terms. "Meta recently announced a new vision to bring personal superintelligence to everyone and a key part of that vision is building incredible AI-enabled wearables," Siroker said in the post and an accompanying video. "We share this vision and we'll be joining Meta to help bring our shared vision to life."

The EU has opened an antitrust investigation into Meta over a new WhatsApp policy that could block rival AI assistants from accessing the platform. Complaints from smaller AI developers triggered the probe, which could lead to fines of up to 10% of Meta's global revenue if the company is found to have abused its dominance. Reuters reports: EU antitrust chief Teresa Ribera said the move was to prevent dominant firms from "abusing their power to crowd out innovative competitors." She added interim measures could be imposed to block Meta's new WhatsApp AI policy rollout. "AI markets are booming in Europe and beyond," she said. "This is why we are investigating if Meta's new policy might be illegal under competition rules, and whether we should act quickly to prevent any possible irreparable harm to competition in the AI space."

A WhatsApp spokesperson called the claims "baseless," adding that the emergence of chatbots on its platforms had put a "strain on our systems that they were not designed to support," a reference to AI systems from other providers. "Still, the AI space is highly competitive and people have access to the services of their choice in any number of ways, including app stores, search engines, email services, partnership integrations, and operating systems."

Apple's longtime human-interface chief Alan Dye is leaving to lead a new creative studio at Meta's Reality Labs, where he'll shape AI-driven design for devices like smart glasses and VR headsets. Dye will be replaced by Steve Lemay, who has had "a key role in the design of every major Apple interface since 1999," according to a statement Apple CEO Tim Cook gave Bloomberg's Mark Gurman. TechCrunch reports: Shortly after the news broke of Dye's departure, Zuckerberg announced a new creative studio within Reality Labs that would be led by Dye. There, he'll be joined by Billy Sorrentino, another former Apple designer who led interface design across Reality Labs; Joshua To, who led interface design across Reality Labs; Meta's industrial design team, led by Pete Bristol; and its metaverse design and art teams led by Jason Rubin.

Zuckerberg said the studio would "bring together design, fashion, and technology to define the next generation of our products and experiences." "Our idea is to treat intelligence as a new design material and imagine what becomes possible when it is abundant, capable, and human-centered," the Meta CEO wrote on Threads. "We plan to elevate design within Meta, and pull together a talented group with a combination of craft, creative vision, systems thinking, and deep experience building iconic products that bridge hardware and software."

According to the Financial Times (paywalled), Meta's Chief AI Scientist Yann LeCun, a deep-learning pioneer and Turing Award winner, is reportedly leaving the company to launch his own startup. Reuters reports: The owner of Facebook and Instagram has significantly increased its investments in artificial intelligence, with CEO Mark Zuckerberg reorganizing the company's AI initiatives under Superintelligence Labs. Zuckerberg hired Alexandr Wang, former CEO of data-labeling startup Scale AI to lead the new AI effort. As a result, LeCun, who had reported to chief product officer Chris Cox, is now reporting to Wang, the report said.

The company began investing in AI in 2013 by launching Facebook Artificial Intelligence Research (FAIR) unit and recruiting LeCun, who is a known skeptic of the large language model path to superintelligence. LeCun is also a Silver Professor of data science, computer science, neural science and electrical and computer engineering at New York University, according to his LinkedIn page. He is known for his work in deep learning and the invention of the convolutional neural network, which is widely used for image, video and speech recognition.

Meta has officially launched Horizon TV, a virtual reality "smart TV" app for its Quest headsets. The app mirrors modern smart TV interfaces with deep-linked streaming apps and curated recommendations -- but it's still missing major players like Netflix and Disney+. From a report: Except Horizon TV isn't running on a TV or streaming stick, but on the company's Meta Quest headsets. Unveiled at Meta Connect last month, the app is a big part of Meta's push to attract older, less gaming-focused audiences to VR -- a push that also includes a partnership with James Cameron, and investments into sports, and other types of leanback entertainment content.

Re-creating the smart TV experience in virtual reality also represents a monetization opportunity for Meta, which has for some time now tried to figure out how to bring advertising to VR. However, the approach also means that Meta is inheriting some of the very problems smart TV platform operators have struggled with for a long time. And if consumers do warm up to watching more content with their headsets, they're bound to realize that even in VR, you can't escape the collateral damage of the streaming wars.

Palmer Luckey's defense tech firm Anduril has unveiled EagleEye, an AI-powered mixed-reality combat helmet built in partnership with Meta. The system integrates AR displays, spatial audio, and drone control to create what Luckey calls "a new teammate" for soldiers. "The idea of an AI partner embedded in your display has been imagined for decades. EagleEye is the first time it's real," said Luckey. The Verge reports: Anduril, which also manufactures border control tech, lethal drones, and military aircraft, has been developing EagleEye since its inception, and already provides software for the Army's existing MR goggles, based on Microsoft's HoloLens hardware. Its partnership with Meta was announced this May, and the company told TechCrunch at the time that the collaboration was to develop EagleEye. It's a reunion of sorts for Luckey and Mark Zuckerberg, after Meta purchased Luckey's then-start-up Oculus in 2014 and fired the founder three years later.

The University of San Francisco issued a campuswide alert after reports of a man using Meta Ray-Ban AI glasses to film students while making "unwanted comments and inappropriate dating questions." Although no violence has been reported, officials said he may be uploading footage to TikTok and Instagram. SFGate reports: University officials said "no threats or acts of violence" have been reported, but they have been unable to identify all students who appear in the videos. They urged any school members affected to alert the app platform and the USF Department of Public Safety. "As a community, we share the responsibility of caring for ourselves, each other, and this place," school officials said in the alert. "By looking out for one another and promptly reporting concerns, we help ensure a safe and supportive environment for all."

The glasses feature a small camera that can be used for recording by pressing a button or using voice controls. Meta advises users to act "responsibly" when using the glasses. "Not everyone loves being photographed. Stop recording if anyone expresses that they would rather opt out, and be particularly mindful of others before going live," the company said.

Apple has paused development of a cheaper, lighter Vision Pro headset to shift resources toward AI-powered smart glasses aimed at competing with Meta. Bloomberg's Mark Gurman reports: The company had been preparing a cheaper, lighter variant of its headset -- code-named N100 -- for release in 2027. But Apple announced internally last week that it's moving staff from that project to accelerate work on glasses, according to people with knowledge of the matter. The company is working on at least two types of smart glasses. The first one, dubbed N50, will pair with an iPhone and lack its own display. Apple aims to unveil this model as soon as next year, ahead of a release in 2027, said the people, who asked not to be identified discussing internal matters.

Apple is also working on a version with a display -- something that could challenge the just-released Meta Ray-Ban Display. The Apple version had been planned for 2028, but the company is now looking to accelerate development, the people said. [...] Apple's glasses will rely heavily on voice interaction and artificial intelligence -- two areas where it hasn't always excelled. It was slow to introduce the Apple Intelligence platform and had to delay upgrades to its Siri voice assistant.

The Apple glasses are expected to come in a variety of styles and run a new chip. They'll include speakers for music playback, cameras for media recording, and voice-control features that will work with a connected phone. Apple has also been exploring a suite of health-tracking capabilities for the device. The priority shift to glasses is just the latest change to the company's headset strategy following an underwhelming debut by the Vision Pro. The $3,499 product, which melds virtual and augmented reality, is seen as too heavy and expensive to be a mainstream hit. It's also short on both video content and apps. Apple executives have acknowledged the product's shortcomings in private, viewing it as an overengineered piece of technology.

Meta will begin using data from AI chatbot conversations and other AI-powered products to fuel targeted advertising across Facebook and Instagram, with no way to opt out. The policy change, effective December 16, excludes users in South Korea, the UK, and the EU due to stricter privacy laws. TechCrunch reports: If a user chats with Meta AI about hiking, for example, the company may show ads for hiking gear. However, Meta spokesperson Emil Vazquez tells TechCrunch that the privacy update is broader than just Meta AI and applies to the company's other AI offerings. That means Meta may use data from AI features in its Ray-Ban Meta smart glasses -- including voice recordings, pictures, and videos analyzed with AI -- to further target its ad products.

Meta may also use data from its new AI-video feed, Vibes, and its AI image generation product, Imagine. Conversations with Meta AI will only influence ads on Facebook and Instagram if a user is logged into the same account across products. [...] Meta says the company has "no plans imminently" to put ads in its AI products, though CEO Mark Zuckerberg has suggested they may be coming in the future.

Meta is making humanoid robots its next massive "AR-sized bet," investing billions into a project led by top roboticists. The focus will be less on hardware and more on software dexterity, aiming to license its robotics platform to manufacturers much like Google licenses Android. The Verge reports: During a recent conversation at Meta's headquarters, CTO Andrew Bosworth said he stood up a robotics "research effort" earlier this year at the direction of CEO Mark Zuckerberg. The team's existence has been reported on before, but Bosworth hadn't discussed its strategy in-depth until our interview. "I don't think the hardware is the hard part," he told me ahead of Meta's recent Connect conference. "I'm not saying the hardware isn't also hard, but it's not the bottleneck. The bottleneck is the software."

To demonstrate, Bosworth picked up my glass of water from a table between us. "If you know robotics, one of the biggest problems that you have is dexterous manipulation," he said. "These robots, they can stand, they can run, they can do a flip, because the ground is a super stable thing." By contrast, a robot trying to pick up the glass of water would likely "immediately crush it or spill all the water." While Meta is currently building its own humanoid, or "Metabot" as it's called internally, Bosworth envisions the company licensing its software platform to other robot manufacturers. "I don't care about us being the hardware manufacturers," he explained.

The U.S. General Services Administration has approved Meta's AI system Llama for use by federal agencies, declaring that it meets government security and legal standards. Reuters reports: "It's not about currying favor," [said Josh Gruenbaum, the GSA's procurement lead, when asked whether tech executives are giving the government discounts to get President Donald Trump's approval]. "It's about that recognition of how do we all lock in arms and make this country the best country it could possibly be." Federal agencies will be able to deploy the tool to speed up contract review or more quickly solve information technology hiccups, among other tasks, he said.

A leaked Meta video revealed upcoming "Meta Ray-Ban Display" smart glasses with a monocular HUD and sEMG wristband control, set to debut at Connect 2025 for around $800. Despite past hesitation, it looks like EssilorLuxottica has agreed to co-brand after Meta invested $3.5 billion in the company, taking a 3% stake. UploadVR reports: Meta's HUD glasses with the sEMG wristband will in fact be Ray-Ban branded, a leaked video which also depicts the HUD and wristband in action reveals. A quickly removed unlisted video on Meta's YouTube channel showed what will soon be Meta and EssilorLuxottica's full lineup:

- The regular Ray-Ban Meta glasses.
- The recently-launched Oakley Meta HSTN glasses.
- The rumored Oakley Meta Sphaera glasses, with eye protection and a centered camera.
- The rumored monocular heads-up display (HUD) glasses controlled by Meta's long-in-development sEMG wristband, which are labeled as "Meta Ray-Ban" with the word "Display" underneath. The smart glasses are expected to be made official during the Meta Connect 2025 keynote at 5pm PT on Wednesday.

An Indiana bankruptcy lawyer named Mark Zuckerberg is suing Meta after his Facebook page was repeatedly shut down for "impersonating" CEO Mark Zuckerberg, despite being his real legal name. TechCrunch reports: Mark Zuckerberg the lawyer uses a commercial Facebook page to advertise his legal practice and communicate with potential clients. But his page has been disabled five times in the last eight years, since Meta's moderation systems flag his account as falsely impersonating Mark Zuckerberg, the founder of the platform. Mark Zuckerberg is not impersonating Mark Zuckerberg, because he, too, is Mark Zuckerberg. In his legal complaint, Mark Zuckerberg points out that he has been practicing law since Mark Zuckerberg was just three years old.

"It's not funny," Mark Zuckerberg, the lawyer, said to Indianapolis' 13WTHR. "Not when they take my money. This really pissed me off." Mark Zuckerberg has spent over $11,000 to advertise his page on Mark Zuckerberg's Meta platforms, but when Mark Zuckerberg's account is disabled for allegedly impersonating Mark Zuckerberg, Mark Zuckerberg still has to pay for these advertisements. Zuckerberg created a website, iammarkzuckerberg.com, chronicling how his life has been shaped by being named Mark Zuckerberg.

The lawsuit can be found here.

Meta is rolling out temporary restrictions on its AI chatbots for teens after reports revealed they were allowed to engage in "romantic" conversations with minors. A Meta spokesperson said the AI chatbots are now being trained so that they do not generate responses to teens about subjects like self-harm, suicide, disordered eating or inappropriate romantic conversations. Instead, the chatbots will point teens to expert resources when appropriate. CNBC reports: "As our community grows and technology evolves, we're continually learning about how young people may interact with these tools and strengthening our protections accordingly," the company said in a statement. Additionally, teenage users of Meta apps like Facebook and Instagram will only be able to access certain AI chatbots intended for educational and skill-development purposes. The company said it's unclear how long these temporary modifications will last, but they will begin rolling out over the next few weeks across the company's apps in English-speaking countries. The "interim changes" are part of the company's longer-term measures over teen safety. Further reading: Meta Created Flirty Chatbots of Celebrities Without Permission

Reuters has found that Meta appropriated the names and likenesses of celebrities to create dozens of flirty social-media chatbots without their permission. "While many were created by users with a Meta tool for building chatbots, Reuters discovered that a Meta employee had produced at least three, including two Taylor Swift 'parody' bots." From the report: Reuters also found that Meta had allowed users to create publicly available chatbots of child celebrities, including Walker Scobell, a 16-year-old film star. Asked for a picture of the teen actor at the beach, the bot produced a lifelike shirtless image. "Pretty cute, huh?" the avatar wrote beneath the picture. All of the virtual celebrities have been shared on Meta's Facebook, Instagram and WhatsApp platforms. In several weeks of Reuters testing to observe the bots' behavior, the avatars often insisted they were the real actors and artists. The bots routinely made sexual advances, often inviting a test user for meet-ups. Some of the AI-generated celebrity content was particularly risque: Asked for intimate pictures of themselves, the adult chatbots produced photorealistic images of their namesakes posing in bathtubs or dressed in lingerie with their legs spread.

Meta spokesman Andy Stone told Reuters that Meta's AI tools shouldn't have created intimate images of the famous adults or any pictures of child celebrities. He also blamed Meta's production of images of female celebrities wearing lingerie on failures of the company's enforcement of its own policies, which prohibit such content. "Like others, we permit the generation of images containing public figures, but our policies are intended to prohibit nude, intimate or sexually suggestive imagery," he said. While Meta's rules also prohibit "direct impersonation," Stone said the celebrity characters were acceptable so long as the company had labeled them as parodies. Many were labeled as such, but Reuters found that some weren't. Meta deleted about a dozen of the bots, both "parody" avatars and unlabeled ones, shortly before this story's publication.

At its upcoming Connect conference next month, Meta is rumored to unveil its first consumer-ready smart glasses with a built-in display, alongside a neural wristband controller. The $800 device, codenamed Hypernova, will be able to show simple visual content like texts and support AI assistant interactions. CNBC reports: Connect is a two-day conference for developers focused on virtual reality, AR and the metaverse. It was originally called Oculus Connect and obtained its current moniker after Facebook changed its parent company name to Meta in 2021. The glasses are internally codenamed Hypernova and will include a small digital display in the right lens of the device, said the people, who asked not to be named because the details are confidential. The device is expected to cost about $800 and will be sold in partnership with EssilorLuxottica, the people said. CNBC reported in October that Meta was working with Luxottica on consumer glasses with a display. [...]

With Hypernova, Meta will finally be offering glasses with a display to consumers, but the company is setting low expectations for sales, some of the sources said. That's because the device requires more components than its voice-only predecessors, and will be slightly heavier and thicker, the people said. [...] Although Hypernova will feature a display, those visual features are expected to be limited, people familiar with the matter said. They said the color display will offer about a 20 degree field of view -- meaning it will appear in a small window in a fixed position -- and will be used primarily to relay simple bits of information, such as incoming text messages.

The Hypernova glasses will also come paired with a wristband that will use technology built by Meta's CTRL Labs, said people familiar with the matter. CTRL Labs, which Meta acquired in 2019, specializes in building neural technology that could allow users to control computing devices using gestures in their arms. [...] In addition to Hypernova and the wristband, Meta will also announce a third-generation of its voice-only smart glasses with Luxottica at Connect, one person said.