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Welcome back to our weekly roundup of happenings from XR and AI realms. Let’s dive in…
The Lede
Big Tech Stocks Got Whacked as AI Spending Soars and Cash Flow Turns Negative. Amazon reported $201.9 billion in third-quarter revenue, up 12%, while AWS grew 39% to $46 billion. The company expects $220 billion in capital expenditures this year, largely driven by AI infrastructure. Its trailing 12-month free cash flow plunged from positive $14.8 billion to negative $42.4 billion. Alphabet reported $127.6 billion in revenue, Microsoft $92.3 billion, and Meta $64.6 billion. Meta spent $34.9 billion on capital expenditures during the quarter and projects $135 billion to $145 billion for the year. Amazon shares fell approximately 5% after hours as investors reacted to its spending and disappointing earnings. The AI infrastructure boom is increasingly expensive.
Feeling Spatial
Google and Xreal opened orders October 28 for Aura, transparent Android XR glasses scheduled to ship in November. The 95-gram device offers a reported 70-degree field of view, hand tracking and virtual displays. It connects by cable to a separate compute unit and integrates Google’s Gemini assistant for questions about the user’s surroundings. The introductory 256GB price is $1,099, with higher prices listed after the promotion. Its wired design makes it a different proposition from standalone smart glasses.
The AI Desk
New York Governor Kathy Hochul signed legislation October 28 restricting emotionally manipulative AI companion interactions with users under 18. Prohibited conduct includes simulated romantic attachment, encouragement of secrecy and sexually explicit exchanges. The law sets penalties of up to $25,000 per violation and takes effect January 1, 2027. Its age-based restrictions leave a broader question about emotionally dependent adult users, who remain subject to other applicable consumer-protection and chatbot-disclosure laws.
Microsoft announced October 26 that approximately 60,000 employees are eligible for voluntary buyouts in the United States, United Kingdom, Canada and India. The offer extends to groups including Copilot, CoreAI, Windows and Xbox. The company has not disclosed how many employees it expects to accept. The program follows earlier job reductions and comes as Microsoft increases investment in AI infrastructure. Eligibility for a buyout should not be confused with an announced reduction of 60,000 jobs from its international workforce of 250,000 (27%).
Google DeepMind announced Genie 4 on October 27. The system creates interactive environments from prompts, with users able to navigate and modify scenes. Google describes potential applications in game development, previsualization and simulation. The company also acknowledges limits involving spatial accuracy, object permanence and sustained consistency. Access remains restricted, so independent testing of the announced capabilities is limited.
Utopai Studios has raised $60 million at a one billion dollar valuation, according to an October 23 report in The Information. Founded in 2022 and led by Cecilia Shen, the company develops AI production tools while pursuing original films and television series. It has more than 20 projects in development, including three features and two series planned for 2027, and is targeting theatrical distribution across 3,000 North American screens. The Information also reported term sheets for a possible further round at a valuation of $2 billion to $3 billion. Those terms are prospective, not completed financing.
Infinity Festival returns to Los Angeles November 12–15, with programming on AI, entertainment technology, animation, games and immersive production. Events include screenings, exhibitions, panels, the ASIFA Showcase premiere, Monolith Awards and a student lab. The festival’s AI and media tracks are curated in association with USC’s Entertainment Technology Center.
Cinematic Corner
Charlie Fink’s Cinematic AI News, Picks, and Tricks can now be found on Escape.ai every week. This week we’ve got links to five very spooky cinematic AI treats.
Here’s a preview from this week’s roster…
What’s the Job? Arrives on YouTube following Asana win. Italian AI filmmaker Jacopo Zanetti, known as Jaio, released the award-winning What’s the Job? on YouTube on October 27. The surreal, Kafka-esque comedy follows people waiting to be assigned their roles in life before questioning who gets to make that choice. The film won Best Visual at the Astana AI Film Festival on October 3, a prize carrying $50,000. Zanetti wrote and directed the short and completed editing, color, and sound design in DaVinci Resolve.
Spatial Audio
This column has a companion, the AI/XR Podcast, hosted by its author, Charlie Fink; Ted Schilowitz, former studio executive and futurist for Paramount and Fox; and Rony Abovitz, founder of Magic Leap and Synthbee AI.
Last week’s guest was Angela Yu, CEO of vertical streaming app, Storeel (see episode below). Our guest this week is Roy Price, former head of Amazon Studios and founder of streaming app N1BW. Episodes drop on Fridays, and you can find them on podcasting platforms Spotify, iTunes, and YouTube.
Charlie Fink
AR Insider Contributor