Chinese e-commerce giant Alibaba is reportedly downsizing its metaverse operations, following a trend among tech giants in reducing resources in the once-popular sector. Alibaba's metaverse division has laid off numerous employees as part of a restructuring effort to enhance efficiency. Established in 2021 during the virtual world platform hype, the Yuanjing metaverse unit in Shanghai and Hangzhou is now facing cutbacks. The shift in focus towards artificial intelligence has led to decreased interest in the metaverse, prompting companies to reallocate resources. Despite receiving significant investment and employing hundreds of workers, Alibaba's metaverse division will continue offering applications, tools, and services. This downsizing mirrors a broader industry trend where major tech firms are transitioning from metaverse to AI development. Other companies like Baidu, Meta, Microsoft, and Disney have also made similar moves, reflecting the changing landscape of tech priorities. Read more AI-generated news on: https://app.chaingpt.org/news