On April 17, 2025, U.S. District Judge Leonie Brinkema ruled that Google has illegally monopolized key segments of the digital advertising market. The court determined that Google abused its dominance by tying its publisher ad server and ad exchange, thereby stifling competition and maintaining over 90% market share in those areas. This decision follows an earlier ruling in August 2024, where Judge Amit Mehta found that Google violated antitrust laws by paying substantial sums to secure default search engine status on various devices and browsers, effectively maintaining its monopoly in the search market. Google says it will appeal both decisions.

Meta Faces Landmark Antitrust Trial Over Instagram and WhatsApp Acquisitions. CEO Mark Zuckerberg has concluded three days of testimony in the FTC's antitrust trial, defending the acquisitions of Instagram and WhatsApp as strategic investments rather than attempts to stifle competition. He acknowledged considering a spin-off of Instagram in 2018 amid antitrust concerns and admitted Meta was slow to recognize TikTok's competitive threat. Zuckerberg also revealed discussions about introducing an all-ad feed and even resetting users' friend connections to revitalize Facebook. The FTC contends these acquisitions were part of a "buy or bury" strategy to maintain monopoly power, while Meta contends it operates in a competitive landscape that includes platforms like TikTok and YouTube.

OpenAI Developing Social Network. The internal prototype is centered on ChatGPT's image generation capabilities. CEO Sam Altman has been seeking feedback on the project, though it's unclear whether it will be a standalone app or integrated into ChatGPT. A product like this would give OpenAI access to the type of user data X and Meta use to train their AI models. Altman “accidentally” revealed they have 800M monthly users at TED in Vancouver last week.

Infinite Reality Continues Its Buying Spree, Acquiring Touchcast for $500M. The Metaverse platform company will acquire AI avatar company Touchcast for $500 million in cash and stock, adding advanced agentic AI to its immersive media platform. Infinite Reality (IR) itself raised $3 billion in January 2025 from a private investor, bringing its valuation to $12.25 billion. The funding enabled iR to roll up immersive technology companies like Touchcast. IR’s acquisitions include Napster ($207 million), Landvault ($350 million), and Zappar ($45 million).

Loti AI, a Seattle-based deepfake detection startup, has secured an additional $16.2 million. Khosla Ventures led the Series A round, raising its total to $23 million. Initially focused on protecting public figures, Loti AI has expanded its services to consumers seeking to safeguard their digital identities. The company's technology detects and removes unauthorized content, including deepfakes and voice simulations. Strategic partnerships with talent agencies WME and CAA bolster its reach.

Nexad Raises $6M to Build AI-Native Ad Platform. The San Francisco startup develops AI-integrated advertising tools. The $6 million seed funding round was led by a16z Speedrun and Prosus Ventures, with backing from Point72, Umami, and others. The company embeds dynamically generated ads into AI systems like chatbots and search agents. Early partners include iAsk.Ai and Monica.im. Nexad claims its model delivers higher engagement and conversion rates than traditional digital ads by tailoring messaging in real time.

Wonder Raises $3M to Launch AI-First Creative Studio. The London-based company has raised $3 million in pre-seed funding to develop an AI-native studio for original film and interactive content. Backers include LocalGlobe, Blackbird, and angel investors from ElevenLabs, DeepMind, OpenAI, Campfire Studios, and Activision Blizzard. Founded by Xavier Collins and Justin Hackney, Wonder says its tools allow creators to generate high-quality visuals and reduce production costs to a fraction of traditional methods. The company describes itself as a platform for emerging filmmakers and technologists, with partnerships already in place with Campfire Studios, ElevenLabs, and Ravensbourne University.

Horiar AI Raises Funds to Advance Genimate Filmmaking Platform
The Turkish startup, which is focused on generative media tools, has raised an undisclosed investment from Biomka Holdings at a $12 million valuation. The company’s core product, Genimate, is an AI-powered platform that turns short scripts into cinematic video by automatically generating characters, environments, camera angles, and scene transitions. Horiar claims the system maintains near-total continuity across scenes, producing coherent, stylized output without manual intervention. CEO Mustafa Bilek described the deal as “the beginning of the unicorn journey.”

Dedicated Computing and Vrgineers Partner on XR Flight Training Solutions. The collaboration pairs Vrgineers’ professional-grade headsets and simulators—including the XTAL and Somnium VR1—with Dedicated’s rugged A9xxx simulation engines. The systems are designed for portability, high performance, and deployment in diverse environments, from classrooms to field operations. Both companies say the bundled solutions will offer scalable, TAA-compliant training for commercial and defense customers, with support for lifelike physics and real-time feedback.

Universal’s Epic Universe Opens May 22, 2025, Amid Global Uncertainty. Universal’s $7 billion theme park opens May 22, 2025, during a period of global economic uncertainty and reduced international travel. Spanning over 100 acres, the park features five immersive lands: Celestial Park, Super Nintendo World, How to Train Your Dragon – Isle of Berk, The Wizarding World of Harry Potter – Ministry of Magic, and Dark Universe. Highlights include the AR-enhanced "Mario Kart: Bowser’s Challenge," the dueling coaster "Stardust Racers," and the dark ride Harry Potter and the Battle at the Ministry, which merges elements from both the main films and the Fantastic Beasts series.

Georgia Tech Develops Ultra-Miniature Brain-Computer Interface
Researchers at Georgia Tech have unveiled a high-fidelity brain-computer interface (BCI) small enough to fit between hair follicles. The device uses microneedles and flexible wiring to capture neural signals just beneath the skin, enhancing signal quality while minimizing invasiveness. In tests, six participants used the BCI to control augmented reality video calls with 96.4% accuracy. The device functions effectively for up to 12 hours, suggesting potential for short-term applications in healthcare and human-computer interaction.

Dedicated Computing and Vrgineers Partner on XR Flight Training Solutions?. The two companies announced a strategic partnership to co-develop integrated XR simulation bundles for pilot training. The collaboration pairs Vrgineers’ professional-grade headsets and simulators—including the XTAL and Somnium VR1—with Dedicated’s rugged A9xxx simulation engines. The systems are designed for portability, high performance, and deployment in diverse environments, from classrooms to field operations. Both companies say the bundled solutions will offer scalable, TAA-compliant training for commercial and defense customers, with support for lifelike physics and real-time feedback. Joint offerings will be showcased at industry events throughout 2025.

Curious Refuge Announces Winners of Inaugural AI Animation Competition. Curious Refuge has announced the winners of its first AI Animation Competition, sponsored by AI studio Promise and Luma Labs. Entrants were required to utilize AI-generated visuals in every shot. Hal Watmough’s LATE secured first place, winning $10,000. Second place went to Danny Tseng's GRAVEYARD, while ROHKI's A Million Trillion Pathways took third. Audience favorite was THE SLIP by Tim Evans. The competition judges included animation heavyweight Rob Minkoff, director of The Lion King, Stuart Little, Haunted Mansion, Paws of Fury, Peabody & Sherman and many others)

Sandbox VR Surpasses $200M in Sales, Plans Major Expansion.
Location-based VR startup Sandbox VR has exceeded $200 million in lifetime sales, following a strong 2024 with $75 million in revenue and over 1.4 million players. The company has 127 new locations in development, including 83 franchise units sold since early 2024. CEO Steve Zhao credits the growth to a franchise model that enables rapid scaling and reinvestment in content. Recent collaborations include Netflix’s Squid Game Virtuals, and the company is exploring cultural learning experiences beyond gaming. Younger audiences, particularly Gen Z, now comprise about 40% of Sandbox VR’s customer base.

Titanic VR Launches in Early Access on Quest 3 and 3S. Titanic VR, previously available only on PC VR and PlayStation VR, is now in Early Access on Meta’s Quest 3 and 3S headsets. Developed by Engage XR, the experience leverages the XR2 Gen 2 chipset to deliver a detailed recreation of the Titanic, including hundreds of NPCs and intricate ship interiors. Currently, users can explore the shipwreck via submarine in Exploration mode. An upcoming Experience mode will allow players to relive the 1912 sinking from a survivor’s perspective. The title is available at Meta Horizon Store.

V-Nova has released two immersive cinematic experiences, Sharkarma: Guardian of the Oceans and Weightless, using its PresenZ format. The technology enables six-degrees-of-freedom (6DoF) exploration within volumetric scenes. Sharkarma is an animated ocean adventure endorsed by WildAid and StopFinning. Weightless is a music video by Diane Warren and Arilena Ara. Both are available on ImmersiX, a new SteamVR app. The format avoids motion sickness and uses standard CG pipelines, allowing creators to adapt or remaster content for immersive platforms.

This column serves as the script for the news segment of our weekly AI/XR Podcast, co-hosted by former Paramount futurist and co-founder of Red Camera, and Rony Abovitz, founder of Magic Leap, Mako Robotics, and Synthbee AI. This week’s guest is Adam Draper, thought leader and VC. You can find us on Spotify, iTunes, and YouTube.?

What We’re Reading

Tim Cook Reportedly Prioritizes AR Glasses Development Over Other Projects Apple CEO Tim Cook is reportedly "hell bent" on launching true augmented reality glasses before Meta achieves the same, according to Bloomberg's Mark Gurman. Cook has made the development of lightweight, all-day wearable AR glasses a top priority, with sources indicating it's his primary focus in product development. While Apple continues to iterate on its Vision Pro headset, these efforts are seen as stepping stones toward the ultimate goal of AR glasses. Significant technical challenges remain, including the need for high-resolution displays, efficient chips, and compact batteries to enable a viable consumer product.

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