Welcome back to our weekly roundup of happenings from XR and AI realms. Let’s dive in…
The Lede
YouTube Surpasses Disney – and Netflix – as Largest Streamer. The mega streamer estimated $62 billion in revenue in 2025, surpassing Disney’s media business and becoming the largest media company in the world, according to research firm MoffettNathanson. The Google-owned platform earned more than $40 billion from advertising alone last year, exceeding the combined ad revenue of Disney, NBCUniversal, Paramount, and Warner Bros. Discovery. Subscription products, including YouTube TV, Premium, Music, and NFL Sunday Ticket, contributed nearly another $22 billion. Analysts estimate the platform could be worth $500 billion to $560 billion as a standalone business, which is Netflix territory. In 2025, YouTube generated over $60 billion in revenue (driven by ads and subscriptions) compared to Netflix’s $45.18 billion. YouTube also dominates with over 2.5 billion active users and higher total viewing time. Creator-driven platforms now compete directly with traditional studios for audience attention and advertising budgets.
Feeling Spatial
VR Boxing Becomes a Live Spectator Event. A recent event hosted by the Global Gaming League showed how virtual reality sports could work as live entertainment. Competitors including Misfits Boxing champion Chase DeMoor, fought inside the VR game The Thrill of the Fight 2 while wearing Meta Quest 3 headsets, throwing real punches as their avatars battled in a virtual ring. The physical movement made the match easy for a live audience to follow, with spectators reacting to punches much like a traditional boxing crowd. Organizers see the format as a new form of “gaming entertainment,” combining esports with physical competition that plays well both in VR and in front of a crowd.
From Specs to Subscribers: Snap’s Revenue Diversification Moves. In the face of ad-market challenges, several ad-supported tech giants are diversifying into other revenue streams (while others, like Apple, Amazon, and Netflix diversify in the other direction). Snap is one of those players, whose subscription revenue was just validated by crossing the $1 billion mark. And of course, it has consumer Spectacles on the horizon. What else is Snap doing to diversify the revenue mix? And does this represent a trend we’ll see more of?
From Specs to Subscribers: Snap’s Revenue Diversification Moves
Sandbox Scales, Signaling Location-Based VR’s Turnaround. Sandbox’s franchise model has gained traction recently, signaling a scalable model for location-based VR. Could this also signal strengths in the broader LBVR category as it turns a corner?
Follow the Money
LeCun’s AMI Labs Raises $1.03 Billion for World Models. Advanced Machine Intelligence (AMI), a startup co-founded by former Meta chief AI scientist Yann LeCun, raised $1.03 billion in funding at a $3.5 billion valuation to develop AI “world models,” systems designed to understand and reason about the physical world rather than simply predict text. The company is led by CEO Alexandre LeBrun and backed by investors including Cathay Innovation, Greycroft, Hiro Capital, HV Capital, and Bezos Expeditions. AMI plans to build new architectures based on LeCun’s JEPA research, which attempts to model real world environments using video and spatial data. The approach represents an alternative path to today’s dominant large language model strategy.
Mind Robotics Raises $500 Million. The startup, founded by Rivian CEO, raised $500 million in a funding round led by Accel and Andreessen Horowitz. The investment values the company at about $2 billion. Mind Robotics is developing AI-driven robotic systems designed to operate in real-world industrial environments, part of a growing wave of robotics startups backed by large venture rounds. Investors have increased their focus on robotics as advances in foundation models make it easier to train machines to perform complex physical tasks. The scale of the round reflects expectations that AI-powered robots will move from controlled factory settings into broader commercial and logistics applications.
The AI Desk
ElevenLabs Introduces ElevenCreative “Flows.” ElevenLabs expanded its creative platform with the launch of Flows, a node-based canvas designed to simplify complex AI production workflows. The system allows creators to connect voice generation, audio editing, scripting, and automation tools visually instead of writing code. Each node represents a function such as voice synthesis, prompt logic, or audio processing, which can be linked together to build reusable pipelines. The company frames the release as a way to move AI production closer to professional creative software, similar to node-based systems used in visual effects and game engines. Flows places ElevenLabs more directly in the emerging market for end to end AI production tools.
Meta appears to be evolving its Vibes feature from a simple AI video feed into a full creative editing environment. Early testing shows a web-based studio where users can create projects, generate images and videos, and assemble them on a timeline with editing tools similar to conventional production software. The interface suggests a node or project workflow aimed at creators rather than casual users. References inside the product indicate partnerships with tools such as Midjourney and Black Forest Labs, while Meta continues developing its own Movie Gen video models. The move places Vibes in direct competition with generative video platforms like Runway, Pika, and OpenAI’s Sora.
Starboy Wearable Digital Pet Debuts. Creature’s Starboy introduces a wearable digital pet that blends fashion, gaming, and AI-powered interaction. The device attaches to clothing and behaves as a small animated companion that reacts to movement and user input. Starboy draws on the legacy of digital pets such as Tamagotchi but updates the idea with modern hardware and AI features designed to give the character a more dynamic personality. The launch reflects renewed interest in character based wearable technology that merges physical accessories with persistent digital identities. For creators and brands, products like Starboy hint at a potential new category of interactive consumer electronics built around characters rather than screens.
Spatial Audio
For more spatial commentary & insights, check out the AI/XR Podcast, hosted by the author of this column, Charlie Fink, and Ted Schilowitz, former studio executive and futurist for Paramount and Fox, and Rony Abovitz, founder of Magic Leap. Our guest is Nokia Futurist and BCG advisor Cathy Hackl. You can find it on podcasting platforms Spotify, iTunes, and YouTube.
Charlie Fink is an author and futurist focused on spatial computing. See his books here. Spatial Beats contains insights and inputs from Fink’s collaborators including Paramount Pictures futurist Ted Shilowitz.