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Microsoft Halts Key Metaverse Ventures, Potential Layoffs

Madonna by Madonna
10/27/2023
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In a surprising move, Microsoft has decided to halt two of its flagship metaverse ventures, Project Airsim and Project Bonsai, a decision that is expected to affect a substantial number of employees and signals an unexpected shift for the tech giant.

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Project Airsim, initially conceived as an innovative AI-based aircraft simulation system for industrial applications and a cornerstone of Microsoft’s vision for the “industrial Metaverse,” is now set for shutdown. Unfortunately, this decision also means the layoff of the entire team associated with the project, scheduled for December 15.

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A Microsoft spokesperson responded to the development, stating, “We are proud of the impact this incubation created for our customers, and we will continue to prioritize investments in Azure as the computing platform supporting the industrial Metaverse and a diverse range of AI projects within the company.”

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Project Bonsai, an essential AI development platform acquired through the purchase of AI startup Bonsai in 2018, played a crucial role in these overarching metaverse initiatives. However, a recent strategic shift within the company has prompted a thorough reassessment of priorities, leading to the abrupt discontinuation of both projects.

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This decision by Microsoft appears to be driven by a realignment of focus, notably in light of its strengthened collaboration with OpenAI, an extension announced earlier in 2023.

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