The metaverse space race will be visible from Wall Street

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The past 12 months have taught us that the metaverse is considered by many to be the next great frontier for technology. The outcry caused by Facebook’s high profile rebrand to Meta has shown that the greatest tech space race of the 21st century will be fought on the Wall Street battlefields — but the stock market has also helped identify some of the forgotten players integral to will be of the mechanics of this brave new world.

The race for the metaverse is a unique prospect for the 21st century, especially since there is little understanding of what such a revolutionary mixed reality digital space will look like in practice – or how companies will want to take advantage of the new technology.

So, who will manage to take advantage of the metaverse the most? To solve this puzzle, it is important to understand the form the metaverse is likely to take, and how the technology will have to adapt to the sheer scale of what promises to be the greatest technological innovation of the century so far.

According to forecasters, the metaverse is expected to grow at an astonishing pace over the decade, reaching a market value of more than $1 trillion within a few years.

According to PwC data, the global metaverse market is expected to be worth more than $1.5 trillion by 2030. This massive growth helps illustrate why companies like Facebook have been willing to undergo a name change to accommodate this emerging market. while positioning themselves with the best possible chance of establishing themselves as an early market leader.

As a result, the rebranded Meta shocked investors on Wall Street with its name change — sparking a heavy stock sell-off that was exacerbated by a broader tech stock decline in the wake of rising inflation rates.

Today, Meta (NASDAQ:FB) stock is down about 35.5% from its share price when the name change was announced. However, it’s likely that CEO Mark Zuckerberg has anticipated the prospect of a near-term downturn in company stocks and embraced short-term losses with the broader metaverse growth over time in mind.

The most memorable technological phenomenon to create such a buzz that spread to global stock markets and beyond was the dotcom boom at the turn of the millennium; however, the race for the metaverse seems fundamentally different due to the fact that it has sparked battles between some of the biggest names on Wall Street as companies try to cash in on the vast potential of the market.

Here we can see companies like Meta and Microsoft employ vastly different strategies in an effort to gain significant early fame before the push for widespread adoption of the technology sets in.

According to Maxim Manturov, head of investment advisory at Freedom Finance Europe, Facebook’s rebrand to Meta may have started a race that will engulf major stocks on both the NYSE and NASDAQ.

“It is likely that ‘the tide will raise all boats’ and Facebook’s actions have enabled many companies to discover new products or sales channels. For the most part, the strong hype around other companies was due to their size, as FB is a tech giant, and for smaller companies like Roblox or Unity, the metaverse creates more accelerated growth opportunities, which was reflected briefly in the price and therefore was there is such interest from investors,” explains Manturov.

Meta’s rebranding in November 2021 has paved the way for the emergence of other stocks intrinsically linked to the metaverse. While many of these tech stocks have been heavily impacted by the recent inflationary sell-off of tech stocks, their moves on Wall Street are being scrutinized by many companies intrinsically linked to the mechanics of the metaverse, giving investors and analysts some insight. of the most reliable clues as to how the metaverse will actually work.

With this in mind, let’s take a closer look at what Wall Street tells us about the architecture of the metaverse:

The architecture of a new frontier

Despite Meta’s very public actions in recent months, very little attention has been paid to the mechanics of the metaverse, and how such significant technological development will be enabled.

According to Raja Koduri, vice president of Intel’s accelerated computing and graphics group, powering the metaverse will require 1,000 times more computing power than we have available today.

Koduri added that placing just two people in a realistic virtual space requires significant computing power to display lifelike avatars outfitted with detailed and varied clothing, hair, and skin. Creating speech capabilities and precise movement requires sensors that can track audio and physical data input, as well as the ability to interpret real-world objects to interact with. Bringing such avatars to life would require combining extremely high bandwidth with low latency, and this would have to be replicated hundreds of millions of times to accommodate users at the scale many experts predict space will reach.

With this in mind, it’s worth looking at how, and more importantly, who can provide such computing power?

For this, Nvidia seems poised to leverage its fluency in GPU solutions to turn tomorrow’s metaverse into an accessible frontier.

Nvidia’s Omniverse is a digital space that is currently very likely to be used, at least in part, to develop tomorrow’s full-fledged metaverse. To date, more than 50,000 individual creators have downloaded Omniverse since the beta arrived in December 2020. The number of creators participating in Omniverse has grown recently thanks to integrations with other major platforms such as Blender and Adobe, bringing millions of additional users within the framework.

Tellingly, the stock of NVIDIA (NASDAQ: NVDA) is an example of a company that has remained relatively strong and stable amid massive stock sell-offs. In fact, the company has grown in value by more than 100% in just a year.

This insight shows that, despite a mammoth level of development in computer graphics needed to deliver the metaverse tomorrow, investors are confident that NVIDIA’s GPU heritage will be able to deliver the power needed to run a functional digital. to create space for tomorrow.

Companies that are challenging to become metaverse leaders will have to accommodate the pivotal role that big data and artificial intelligence will invariably play in the new technology landscape.

The metaverse will usher in a host of new challenges, and the recent emergence of AI solutions is likely to play a central role in the continued advancement of data modalities such as speech, language, and vision – which are native modalities to the World Wide Web.

Joelle Pineau, co-managing director of Facebook AI Research, acknowledged that big data and AI will have to work extremely hard to create a massively distributed seamless experience for the massive amounts of metaverse users online at any given time.

The sheer volume of data we will be feeding into the metaverse will require unprecedented levels of machine learning capabilities to interpret our gestures, voices, and browsing habits in order to respond in real time.

Pineau admits that while the demands of the metaverse will open up new opportunities for AI, it will also require “some major advances in our AI models.”

For the metaverse to be truly as widespread as the companies closest to it suggest, it is essential that data and AI models are unified between different efforts to achieve their goals. Setting up a ‘world model’ is arguably essential to deliver a metaverse that really works on a global scale.

The metaverse space race is competed by many different companies operating on different fronts. In addition to the highly public moves of industry leaders, we are also seeing companies like Microsoft using a series of strategic acquisitions to build an industry-wide monopoly in gaming.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft chairman and CEO Satya Nadell said in a statement following the company’s acquisition of video game giant Activision. for $68.7 billion. Snow storm early 2022.

Microsoft’s purchase of Activision Blizzard is one of the more recent acquisitions in a series of video game and digital media acquisitions by the tech giants.

The strategy has been widely recognized as Microsoft’s strategic bid to become a metaverse industry leader through the development of compatible video games — which the company says will form the first frontier of the new technology ecosystem.

Microsoft’s approach may resemble the company’s launch of its free-to-use Internet Explorer browser in the mid-1990s as a means of attracting a huge stream of customers to its Windows software, as it is World Wide. Web was still in its infancy.

Again, Microsoft’s acquisition-based approach helped Wall Street’s performance outperform Meta, Roblox, and other companies bidding to become the market leader in the space.

There’s still a long way to go before we all use the metaverse to hang out with friends and go grocery shopping in virtual reality. But with companies trying very publicly to accommodate the fledgling digital space, we could see major tech stocks battling it out on Wall Street in real time. With this in mind, the markets are likely to provide the strongest indicator yet of where the metaverse space race will be won and lost.

Dmytro Spilka is the main wizard at Solvid.

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