Microsoft halts two flagship metaverse ventures, layoffs loom

Project Arisim and Project Bonsai will be no more

Microsoft has surprised the tech world with its decision to halt two of its flagship ventures in the metaverse, namely Project Airsim and Project Bonsai.

The move, which is anticipated to impact a significant number of employees, marks an unexpected shift for the tech giant.

Initially intended as a pioneering AI-based aircraft simulation system for industrial applications, Project Airsim was poised to be a cornerstone of Microsoft's vision for the "industrial Metaverse." However, the company's recent announcement conveyed the shutdown of the project, resulting in the unfortunate laying off of the entire team associated with it.

According to a report by Business Insider, the termination of Project Airsim is scheduled for 15th December, leaving the affected team members in a state of uncertainty.

In response, a Microsoft spokesperson said: "We are proud of the impact this incubation created for our customers, and we will continue to prioritise investments in Azure as the computing platform supporting the industrial Metaverse and a diverse range of AI projects within the company."

Project Bonsai, an integral AI development platform obtained through the acquisition of AI startup Bonsai in 2018, was a vital component of this overarching initiative. But the recent strategic shift has prompted a comprehensive reevaluation of priorities within the company, leading to the abrupt discontinuation of both projects.

Microsoft's decision to terminate these initiatives appears to stem from a realignment of focus, particularly in light of its strengthened collaboration with OpenAI, which was extended earlier in 2023.