SpaceX’s acquisition of Swarm is paying off with new Starlink thrusters

Earlier this week, SpaceX released more information about the new argon Hall thrusters that will power the Starlink V2 mini satellites, an innovation that likely has much to do with the company’s acquisition of Swarm Technologies in 2021.

The deal, which closed in July 2021, was an extremely rare move for SpaceX. Swarm — which manufactures and operates ultra-small satellites for IoT devices — remains the company’s only acquisition in its 21-year history. It was also notable because, relatively speaking, Swarm was still quite a young company: When the deal closed, the startup had around 30 employees, 120 sandwich-sized satellites in orbit and had only just gone live with its flagship product earlier that year.

But in the space industry, talent is king, and it seems that SpaceX has benefited enormously from absorbing Swarm’s team.

Swarm’s two co-founders, Sara Spangelo and Benjamin Longmier, were installed as senior directors of satellite engineering at SpaceX. Both are part of Starlink’s direct to cell team — which is aiming to leverage the Starlink constellation to bring satellite connectivity to smartphones around the world. But Longmier also states on his LinkedIn that he leads Starlink’s electric propulsion group — that is, the group responsible for engineering the new argon Hall thrusters announced this week.

Hall thrusters themselves are not new. The name refers to a general propulsion tech that’s decades old. Essentially, Hall thrusters use a magnetic field to ionize a propellant and produce plasma. Satellites employ thrusters throughout their useful life — to adjust attitude, avoid collisions with other objects or de-orbit at the end of the lifespan.

The real innovation is in the propellant: argon. Argon is many times cheaper than xenon (the most common, and expensive, propellant used in Hall thrusters) and krypton (the propellant SpaceX used in Starlink V1 and V1.5 satellites), in part because it’s more plentiful.

“The transition to argon was tricky, but necessary, as krypton is too rare,” SpaceX CEO Elon Musk explained on Twitter. According to specs shared online, these new thrusters will also generate 2.4 times the thrust and 1.5 times the specific impulse (a measure of how efficiently the unit uses propellant, versus the thrust generated) than previous Starlink thrusters.

As early as 2011, Longmier was lead authoring technical papers on electric propulsion systems that use argon gas. He also co-authored other papers on thrusters using argon and xenon as propellant. On Twitter, Longmier said that it was 556 days from thruster clean-sheet to orbit: That would mean SpaceX would’ve started work on the thrust around the end of August, 2021, very shortly after Swarm was acquired. Longmier did not respond to TechCrunch’s request for comment.

SpaceX’s acquisition of Swarm is paying off with new Starlink thrusters by Aria Alamalhodaei originally published on TechCrunch

https://techcrunch.com/2023/03/03/spacexs-acquisition-of-swarm-is-paying-off-with-new-starlink-thrusters/

Meta rolls out new Facebook Reels features, expands max video length to 90 seconds

Facebook reels new template feature

Meta announced today that it’s adding support for longer Facebook Reels of up to 90 seconds, along with some new creative tools. Up until now, Facebook Reels were limited to 60 seconds. The changes come several months after Meta launched support for longer Instagram Reels of up to 90 seconds. The expansion followed TikTok’s move into YouTube’s territory with videos that can be up to 10 minutes in length, instead of just three.

The company is also rolling out more creative tools, including a new templates feature that lets users create Reels with trending templates. The new feature, which rolled out to Instagram Reels last year, allows users to create new Reels using the same structure as one they just watched. Templates are somewhat similar to TikTok’s own templating option.

Image Credits: Facebook

In addition, Facebook Reels is getting a new “Grooves” feature that automatically aligns and syncs the motion in your video to the beat of your favorite song through visual beat technology. Syncing video to sounds has been a defining characteristic of TikTok, so it’s no surprise that Meta is bringing it to Facebook Reels after rolling it out for Instagram Reels last year.

It’s worth noting that all of these new Reels features first made their way to Instagram more than seven months ago, and are now being released on Facebook. It’s possible that Meta wanted to see how they were being used on Instagram Reels before bringing them over to Facebook Reels.

Facebook launched Reels last year in a move that was seen as a key part of Meta’s response to the TikTok threat. Although Meta initially saw Reels as a way to directly combat TikTok with a feature inside the Instagram app, the company soon realized it could mount a more powerful counteroffensive if it also brought Facebook into the mix and allowed for cross-posting between the two social networks.

Meta says Reels is its fastest growing format and that it continues to grow quickly. Reels plays across Facebook and Instagram have more than doubled over the last year, the company said in an email. It also noted that reshares of Reels have more than doubled on Facebook and Instagram in the last six months. Meta plans to continue to roll out new features for Reels to make it easier for creators to get discovered.

Meta rolls out new Facebook Reels features, expands max video length to 90 seconds by Aisha Malik originally published on TechCrunch

https://techcrunch.com/2023/03/03/meta-rolls-out-new-facebook-reels-features-expands-max-video-length-to-90-seconds/

Embark Trucks lays off workers, explores liquidation of self-driving truck assets

Embark Trucks, the autonomous trucking company that went public in 2021 via a merger with a special purpose acquisition company, is cutting 70% of its workforce and shutting down two offices. And the pain may not be over as CEO Alex Rodrigues noted in an email to employees that the remaining 30% of workers will focus on winding down operations.

The company said in a regulatory filing that about 230 employees were laid off Friday. A source familiar with the plan said the cuts were announced Friday morning. The layoffs are expected to occur in the first and second quarters.

“Unfortunately, after thoroughly evaluating all alternatives, we have been unable to identify a path forward for the business in its current form, Rodrigues wrote, later adding “Today, having exhausted all alternatives, we are taking the incredibly difficult step of laying off ~70% of the company, and shutting down our SoCal and Houston offices.”

The layoffs come more than a month after banking advisory firm Evercore met with various AV companies to explore selling Embark’s assets, according to one source.

A sale of assets appears to be the next order of business, according to a regulatory filing posted Friday and Rodrigues’ email.

Embark’s board approved Wednesday “a process to explore, review and evaluate a range of potential strategic alternatives available to the company,” including alternative uses of its assets to commercialize its technology, additional sources of financing, as well as potential dissolution or liquidation of its assets.

“The board’s decision comes following an extended evaluation by the company of alternative markets in which to commercialize its technology as well as an exploration, performed with the assistance of a financial advisor, of a potential sale of the company,” the filling said.

Embark Trucks was founded in 2016 by CEO Alex Rodrigues and CTO Brandon Moak and quickly got the attention of investors. Rodrigues and Moak met while working on self-driving technology at the University of Waterloo, where both completed Mechatronics engineering degrees.

By 2018, the startup had raised about $47 million. But it was the SPAC boom that really delivered the capital — at least for a short time. In 2021, agreed to merge with special purpose acquisition company Northern Genesis Acquisition Corp. II in a deal valued at $5.2 billion.

Today, Embark Trucks is running short on capital like other companies trying to develop and commercialize autonomous vehicle technology. The company’s market capitalization is about $90 million; at the end of the third quarter, the most recent quarterly report the company has filed, it had about $190 million in cash and cash equivalents.

Story is developing …

Embark Trucks lays off workers, explores liquidation of self-driving truck assets by Kirsten Korosec originally published on TechCrunch

https://techcrunch.com/2023/03/03/embark-trucks-lays-off-workers-explores-liquidation-of-self-driving-truck-assets/

TechCrunch+ roundup: Ocean tech investor survey, AI and PR, L-1 visa options

Many devs rely on donations and crowdfunding to monetize open source projects, but with the proper planning, teams can leverage their work for commercial clients who’ll put them in a higher tax bracket.

Offering users customer support or consulting services are common revenue streams, according to product development consultant Victoria Melnikova, who also says devs should form partnerships and use platforms like Reddit and Hacker News to reach potential paying customers.

“To find your path, talk to your clients and understand their goals and pains.”

Last week, the U.S. Federal Trade Commission, which protects consumers from deceptive business practices, issued an advisory titled “Keep your AI claims in check.”

When it comes to marketing, “false or unsubstantiated claims about a product’s efficacy are our bread and butter,” wrote Michael Atleson, an attorney with the FTC’s Division of Advertising Practices.

Artificial intelligence is a on everyone’s lips at the moment, “and at the FTC, one thing we know about hot marketing terms is that some advertisers won’t be able to stop themselves from overusing and abusing them.”

Given the renewed interest, “for companies where AI was previously No. 4 on the list of proof points, machine learning capabilities should merge into the main hook of the announcement,” advises PR strategist Camilla Tenn.


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“If AI-related coverage can get a new, unknown brand into its target publications today, it could help get the brand’s pitch deck in front of potential investors or partners tomorrow,” she writes in TC+.

Tenn recommends imitating major players like Google and Samsung, which have dedicated teams that release a steady stream of material about “ongoing projects” tied to prevailing tech trends.

“Even if those projects don’t see the light of day, the PR team has strategically positioned the brand as ‘innovative,’” says Tenn. “With this precedent, startups should not feel abashed to use any means necessary to get their name out there.”

Good advice for marketing mercenaries, but keep those pitches straight — reporters know when we’re being sold to, and the FTC isn’t messing around.

Thanks for reading — and for making this TechCrunch’s fastest-growing newsletter last month!

Have a great weekend,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

How to turn an open source project into a profitable business

Image Credits: Juanmonino (opens in a new window) / Getty Images

Many devs rely on donations and crowdfunding to monetize open source projects, but with the proper planning, teams can leverage their work for commercial clients who’ll put them in a higher tax bracket.

Offering users customer support or consulting services are common revenue streams, according to product development consultant Victoria Melnikova, who also says devs should form partnerships and use platforms like Reddit and Hacker News to reach potential paying customers.

“To find your path, talk to your clients and understand their goals and pains.”

To fix the climate, these 10 investors are betting the house on the ocean

Ships assembling a floating offshore wind turbine

Image CreditsLiang Wendong/VCG / Getty Images

Tapping the ocean for energy led to disasters like the Deepwater Horizon oil spill, which released nearly 5 million barrels of crude oil into the Gulf of Mexico in 2010.

Today, wind power and wave action are just two technologies leading investors to take a closer look at ocean conservation technology, reports Tim De Chant.

To learn more about the opportunities they’re chasing and discover how climate change is shaping their investment thesis, he surveyed:

  • Daniela V. Fernandez, founder and CEO of Sustainable Ocean Alliance, managing partner at Seabird Ventures
  • Tim Agnew, general partner, Bold Ocean Ventures
  • Peter Bryant, program director (oceans), Builders Initiative
  • Kate Danaher, managing director (oceans and seafood), S2G Ventures
  • Francis O’Sullivan, managing director (oceans and seafood), S2G Ventures
  • Stephan Feilhauer, managing director (clean energy), S2G Ventures
  • Sanjeev Krishnan, senior managing director and chief investment officer, S2G Ventures
  • Rita Sousa, partner, Faber Ventures
  • Christian Lim, managing director, SWEN Blue Ocean Partners
  • Reece Pacheco, partner, Propeller

Pitch Deck Teardown: Gable’s $12M Series A deck

Remote workspace platform Gable raised a $12 million Series A to scale up its operations, which currently serves more than 5,000 workers in 26 countries.

“Making the business of shared workspaces easier for startups certainly has its challenges, but it’s also a large and growing market,” writes Haje Jan Kamps. “Gable weaves its story together with ease.”

Here’s their 21-slide Series A deck:

  • Cover slide
  • Team slide
  • Market context slide (“The revolution of remote work”)
  • Problem slide No. 1 (“Going remote-first is hard”)
  • How people solve it now (“How it’s done today”)
  • Problem slide No. 2 (“Main Issues”)
  • Solution slide
  • Traction slide (“Where we are”)
  • Product slide No.1 (“Employee view”)
  • Product slide No. 2 (“Management and insights”)
  • Product slide No. 3 (“Host view”)
  • Traction slide (“Partnership with over 800 spaces”)
  • Value proposition slide (“Why they choose Gable”)
  • Case study slide No. 1
  • Case study slide No. 2
  • Business model slide
  • Market-size slide (“TAM”)
  • Go-to-market slide (“Scalable process”)
  • Marketing slide (“Massive channel opportunity)
  • Product road map slide
  • Thank you slide

Dear Sophie: What are my options for changing my status from an L-1 visa?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I started working for my current employer on STEM-OPT, but I’ve lost out in the H-1B lottery four times. Thankfully, my employer transferred me to an international office, and I am now coming back to the U.S. on an L-1 visa.

I’ve heard many complaints from my classmates about not being able to switch employers on an L-1 visa. I don’t see myself staying at my employer for six more years, which is the estimated time until I can get a green card based on my employer’s internal policy.

What are my options for changing my immigration status so I can work at a startup in the U.S. within a year or two?

— Tenacious Transferee

Key legal issues for influencers and brands (and how to deal with them)

Smartphone and judges gavel on black background

Image Credits: SomeMeans (opens in a new window) / Getty Images

No one needs a mega-influencer like Serena Williams or a Kardashian to build buzz for their startup — an evangelist with just a few thousand followers can push qualified customers into your product funnel.

But before hiring a TikTok or YouTube personality, brand marketers should brush up on the laws that govern how influencers operate, and the risks associated with failing to comply.

“Novel legal issues and risks have emerged for both influencers and brands,” says Nicholas Sandy, a litigator at Pryor Cashman.

“Key, recurring issues relate to copyright licensing and infringement, disclosures and statements in endorsements, compliance with securities laws, and defamation.”

Apply now to speak at TechCrunch Disrupt in September

Interested in speaking at TechCrunch Disrupt this September in San Francisco?

Submit a title and a description for the topic you’d like to talk about before April 21.

Selected applicants will have a chance to lead a roundtable discussion or participate in a breakout session followed by an audience Q&A.

TechCrunch+ roundup: Ocean tech investor survey, AI and PR, L-1 visa options by Walter Thompson originally published on TechCrunch

https://techcrunch.com/2023/03/03/techcrunch-roundup-ocean-tech-investor-survey-ai-and-pr-l-1-visa-options/

Perhaps Substack can grow just fine without venture dollars

Substack, a publishing platform known for its newsletter service, announced this week that it had crossed the 2 million paid subscription mark. Given the wealth of historical data we have concerning the growth of paid subscribers at Substack, the number got our attention.

Substack’s simple business model also makes it possible to generate a few gross transaction volume and revenue guesses for the company, which we’ll explore.


The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.


First, a little context: Substack’s first known external capital came in January 2018 via the Y Combinator startup accelerator. The company raised a $2 million seed round in April of the same year. From there, the startup’s ability to raise new funds quickly accelerated, with Andreessen Horowitz leading Substack’s $15.3 million Series A in mid-2019 and a massive $65 million Series B in March 2021.

Perhaps Substack can grow just fine without venture dollars by Alex Wilhelm originally published on TechCrunch

https://techcrunch.com/2023/03/03/perhaps-substack-can-grow-just-fine-without-venture-dollars/

Indian startup Yes Madam exposed sensitive data of customers and gig workers

Indian at-home salon platform Yes Madam exposed the sensitive data of its customers and gig workers due to a server-side misconfiguration.

Noida-based Yes Madam operates in more than 30 cities in the country, according to the firm’s website. The platform offers salon services at home, including therapies, massage, spa and male grooming. Yes Madam’s mobile apps also attracted over a million downloads.

But the startup left a database containing full names, mobile numbers, mailing addresses and email addresses of hundreds of thousands of Yes Madam customers connected to the internet without a password since at least February 20. The database also included customers’ location data, including their latitude and longitude values, as well as payment links, and user device details, such as the model names and IMEI numbers.

Additionally, the startup exposed profile images, names and mobile numbers of gig workers on the platform.

Security researcher Anurag Sen of CloudDefense.ai found the exposed database and asked TechCrunch to help report it to the startup.

Anyone familiar with the database’s IP address could access the spilling data due to the misconfiguration using just their web browser. Sen said the database had entries of more than 900,000 users.

Yes Madam secured the database on Friday, shortly after TechCrunch reached out with details. Yes Madam co-founder Mayank Arya confirmed to TechCrunch that it had put in place a fix.

When asked if Yes Madam had the technical means, such as logs, to determine whether the exposed data was accessed by anyone else, Arya did not comment further.

Sen also informed India’s computer emergency response team CERT-In, the lead agency for handling cybersecurity issues in the country, about the data exposure.

Indian startup Yes Madam exposed sensitive data of customers and gig workers by Jagmeet Singh originally published on TechCrunch

https://techcrunch.com/2023/03/03/yes-madam-india-data-exposed/

Uber is coming for Instacart

Uber has rolled out updates to its Shop and Pay feature that address three of the most commonly raised courier issues: out of stock items, digital payments and order clarity before accepting a trip.

The ride-hail and delivery giant quietly launched Shop and Pay last year, a feature that lets delivery workers opt into receiving trips to do grocery or other retail shopping for customers before dropping off orders to the customer’s door. Basically, it’s Uber’s attempt to follow the Instacart model, which is working well for the incumbent grocery delivery company. Instacart reported a surge in sales and profits in the fourth quarter of 2022, buoyed by the growing consumer trend of buying groceries online rather than in-store.

Since launching six months ago, Uber says nearly 200,000 couriers are actively doing shopping trips each month in the U.S. For reference, over 600,000 people work for Instacart as shoppers, according to usage data from Business of Apps.

Uber sees a huge opportunity to scale that number up and beef out its grocery delivery pillar — just one part of the company’s plan to cross-sell customers across the platform, from food delivery to grocery delivery, grocery to alcohol, alcohol to experiences, experiences to rides.

(SeeThe Amazonification of Uber)

A crucial factor in this plan is ensuring drivers, or “shoppers” in this case, don’t absolutely hate the job — hence the app updates.

“Shoppers are a key ingredient to the success of Uber’s grocery ambitions, and we’re making great progress — but have a ways to go,” said Meghan Casserly, Uber’s head of communications for delivery. “…but framed against the more than 5.4 million drivers on the Uber platform worldwide, you can see the possibility for converting even a fraction of them to add shopping trips to the mix.”

Finding ways to make the experience of shopping for a customer as easy as possible is well within Uber’s interest to increasing usage of the offering. Shoppers not only have to deliver the orders, but they have to go into the store, ask customers questions, pay for orders and make decisions on what to do if there’s no more ginger lemon kombucha.

The first update gives shoppers a solution to out of stock items. Uber said this was consistently the No. 1 point of dissatisfaction in surveys, with as many as one in five grocery orders including at least one out of stock item. Figuring out a potential replacement is not only an annoying addition to a shopper’s mental load, but it can also lead to shoppers wasting time picking out a substitution. That’s a problem because shoppers aren’t paid based on how much time the gig takes — they accept the rate Uber gives them when they accept the gig, so time is of the essence.

Now, when a shopper tells the app they can’t find the originally requested item in the store, the app will show them a list of suggested substitutions based on similar brands or items to help speed up the decision making process. Shoppers can then send that suggestion to the customer directly in the app for review. Instacart has a similar feature, wherein a driver can choose between replacement suggestions prompted in the app, and the customer can approve the replacement on their end.

Uber has also found an apparent solution to giving its drivers a physical credit card that’s pre-authorized to cover the costs of orders they shop for. Drivers complained about their cards getting declined, putting them in the uncomfortable decision of either canceling the order and thus wasting their time, or paying out of their own pocket and rolling the dice on a reimbursement.

Now across the U.S., shoppers can activate a digital card on their phones using Apple or Google Pay. Uber said in a recent survey, 92% of shoppers found digital payments easy to activate, and 88% said it was easy to check out.

For comparison, Instacart launched a Mobile Checkout option using Apple Pay and Google Pay in 2020, but drivers have said they still need to use the physical card if the order exceeds the price tap limit.

Finally, Uber’s new update gives drivers more clarity over an order before accepting it. Shoppers will have visibility into the number of unique items in an order, rather than just the total number of items. The example Uber gave in a blog post was that it’s handy for a driver to know if they’re picking up one gallon of milk or five so they can decide if that order will actually fit in their car.

Soon, Uber said the “offer card” will also give shoppers information about the order, like whether it contains large, heavy or fragile items.

Instacart didn’t confirm what kind of information is on its offer card for shoppers, but based on a few YouTube videos from shoppers, it looks like shoppers are given the total number of items and total number of units (e.g. there are four items but five units because a customer ordered two of the same yogurts), as well as a brief preview of some of the items on a customer’s shopping list.

Uber is coming for Instacart by Rebecca Bellan originally published on TechCrunch

https://techcrunch.com/2023/03/03/uber-is-coming-for-instacart/

Inside the metaverse hype train at MWC 2023

TechCrunch took a very similar VR trip at MWC a full

Metaverse hype was hanging like a multicolored fog over the Mobile World Congress (MWC) connectivity trade show in Barcelona this week.

Conference organizer, the GSMA’s, program pitched attendees into a smorgasbord of metaverse-themed discussions — most of which seemed designed to generate maximum FOMO, as a parade of tech evangelists took to the stage in Spain, armed with a new generation of acronyms and luridly colored slide-decks, urging the audience not to sweat the detail of whatever this metaverse thing is (or isn’t). And just focus on monetizing it before someone else does.

Europe’s carriers are fully onboard the technicolor hype machine. At MWC they sought to train the show’s global spotlight onto the role of network infrastructure — arguing their pipes-cum-platforms will be essential connective tissue for all this sexy virtual world building, connecting “everything, everywhere”, as one overly-ambitious show floor slogan put it — and using that logic as a springboard to press EU lawmakers for a radical rethink of how connectivity is funded in the here and now.

The CEOs of Orange, Telefonica and Deutsche Telekom were among those taking to MWC’s keynote stage to sound off about the hard economic realities of running such critical infrastructure. The returns vs investment situation is becoming unsustainable, they warned. Especially if policymakers want them to deliver a truly immersive future and make this metaverse thing happen. Subsidize our network upgrades or the connectivity party is over, was the thinly veiled message to EU lawmakers.

The paradigm shift carriers are looking for is a new business reality under which they get to charge tech giants for piping data to popular apps in addition to billing consumers for their Internet access. They aren’t calling this double dipping — or even a Big Tech tax. Their lobbying brands the ask a “fair share” for building connectivity’s 3D future.

Telcos’ frustration at the relatively greater success of app makers, when it comes to monetizing highly scalable software running atop their fixed infrastructure, is nothing new of course. Nor is it the first time European carriers have used the MWC stage to try to lobby the EU for more ‘support’. But metaverse hype creates a fresh opportunity to bring out their begging bowl, dressed up in a new brand of distracting dazzle.

It’s too soon to say what will flow from an exploratory EU consultation on future network funding which was launched on the eve of MWC. But the current Commission does appear to have drunk some of the carriers’ Kool Aid. And the EU’s internal market commissioner, Thierry Breton, dropped into the conference in person — taking a turn on the stage himself, where he hyped a vision of “Web 4.0” as “seamless interconnectivity” powering “virtual twins” and “the copy of everything” — before making some encouraging noises about the case for rethinking operator business models — so this is, for sure, an area to watch…

But what is the metaverse anyway? Something immersive, which blends the physical and virtual, was about as close to a plausible-sounding definition TechCrunch heard across three days of connectivity industry chatter this week. However there was no shortage of takes on what it is (or isn’t) — and we also heard claims to the contrary; for example that immersion isn’t a necessary component at all. Consensus there was none.

Predictions of how many trillions the metaverse opportunity could be worth by 2030 also ranged wildly — from $1.7tr (PwC) to $5tr (McKinsey) to $8tr (Morgan Stanley), according to one over-enthusiastic speaker’s slides. However he caveated these guestimates by conceding they’re pegged to a flavor of metaverse that includes NFTs and Web 3… So not actually an immersive 3D future at all then?

With such shape-shifting definitions on show, splashy claims of “tremendous opportunity” felt more than a little unreal. And as TechCrunch hiked across vast exhibition halls, notably less populated than in pre-pandemic years, the metaverse concept seemed to be both everywhere and nowhere; both a major theme of the conference organizers’ programmed discussions and yet elusive at the show itself — at best, a fuzzily drawn theoretical future. One which, outside the pages of science-fiction, still seems largely out of focus — hovering somewhere out there, over the horizon. Maybe.

Enter the metaverse?

Hold that thought! A Day 3 MWC keynote session — emblazed with a call-to-action title: ‘Enter the metaverse’ — was teed-up by a moderator in full hype mode. She kicked off by asking the audience if they’d already been in the metaverse. And a solid smattering of hands shot up immediately. Yet her hot take on this (frankly confusing) display was to express disappointment that she couldn’t see lots more affirmatives. Which was discombobulating to say the least. As if we’d somehow wandered into an alternative reality.

The next speaker, from a Web 3.0/NFT startup called Dimple — a self-styled “interactive metaverse platform” with the goal of bringing “Web 3.0 metaverse and digital goods/NFT projects to the mainstream”, one QR-code bearing physical-to-digital teddy bear at a time (don’t ask) — went on to hype the size of the market opportunity by suggesting that looking at AI generated virtual influencers on YouTube or Instagram was somehow a metaverse experience… So, er, confusion seems to be the tech’s strongest certainty at this point.

“We have a definition of the metaverse that it’s ‘the merge’ of the digital with the physical,” said Nokia’s Leslie Shannon, head of trend and innovation scouting for the telecoms kit maker, taking a stab at defining terms on another of the many metaverse panels peppering the MWC23 agenda. “That’s fundamentally it. There’s a lot more you can put in there — I would add real-time,” she expanded before plugging her book (on, you guessed it, the metaverse).

Shannon went on to argue that the metaverse — or metaverses, plural — is not about immersion; rather she suggested the crux is “real-time presence”.

“It’s linking you in your physical reality with information or a person or a place that is physically somewhere else and bringing that to you in your physical reality but not taking you away from that physical reality,” she offered, before coming to a self-induced hard stop (presumably to avoid things getting too confusing again) — but not before sounding a sceptical note over Web 3.0 evangelists trying to shoehorn their stuff into the metaverse. (“There’s some metaverse iterations out there that are kind of [fad or fraud],” she warned. “Not all metaverses are equal.”)

Also speaking on this (McKinsey-sponsored) panel — which, per its moderator, posed the “provocative” question of whether the metaverse is ‘the future, fad or fraud’ — was VR headset maker HTC’s Alvin Wang Graylin, the hardware firm’s China president and global VP of corporate devices.

He offered a plainer take on what metaverse is — dubbing it “just the 3D version of the Internet”; something he suggested researchers and technologists have been incrementally inching toward the past 30 or 40 years. So just an evolution of the connectivity we already have then?

But what does a “3D internet” actually mean for human communication? And wasn’t Second Life basically doing that around two decades ago?

His remarks during the panel didn’t illuminate why more immersive connectivity is going to be especially interesting or transformative. He just argued that Second Life had been too early but now, decades on, with better tech (and content) coming down the pipe, the same sort of 3D world experience would somehow become more compelling.

“Now you have AI happening all around us where you see, you know, amazing kinds of content created, amazing kinds of interactions,” he offered. “Having hand-tracking, eye-tracking, full body tracking. Without AI, that’s not possible, right. So all of these things are maturing at the same time — so that now you can actually have a satisfactory experience [inside virtual worlds]. That’s something that wasn’t possible 20 years ago.”

Nokia’s Shannon had a more direct go at trying to identify a problem for the metaverse to fix — by suggesting putting screens on people’s faces could save us from having to stare at other types of screens, as we’re doing now, here on the plain old 2D Internet.

“If we want to interface with a computer we have to stare at a screen. And [have] our gaze dead-ending in a screen. That’s the problem you’re talking about right there. And so the metaphor is by taking the screen away, and especially the head mounted devices, that reconnects our gaze with the physical world and the people in it,” she suggested. “I think the metaverse is actually going to solve the kind of unspoken screen problem that we have right now.”

But if we’re talking about adding yet more technology into the already cluttered personal mobile and smart device computing mix — stuff that explicitly needs to sit on the face to work (in the case of AR/VR googles) — a more realistic scenario is surely that we’ll end up with even more distraction and abstraction of the human gaze, not less. However no one on this evangelical panel wanted to talk about information overload and the metaverse.

A different set of speakers, programmed deep in the afternoon of Day 3, had been given a 45 minute slot on the keynote stage to pay lip-service to an emerging spectrum of metaverse-linked concerns — from privacy and information overload; to disinformation/manipulation and new forms of tech addiction; to questions of equity and inclusion atop an already yawning digital divide; to the increasing challenge around explainability and transparency of AI-driven technologies; to the crippling environmental costs attached to energy requirements associated with all this immersive world-building, to name a few of the immediately obvious ones.

This panel was entitled ‘Ethical approaches for immersive realities’ — a name that studiously avoids the M word (presumably as the GSMA didn’t want to derail its own hype train) — and the four speakers (plus talkative moderator) barely had time to make introductory remarks before their allotted stage time was up.

“Sometimes I think we’re discussing problems that we don’t have without solving the problems that we have,” said Ricardo Baeza-Yates, a professor at the Institute for Experiential Artificial Intelligence of Northeastern University, who sounded world-weary and exceedingly pessimistic about the accelerating direction of tech industry travel. He went on to warn that people must have the right not to participate in these highly immersive commercial spaces being designed to suck them in.

“Today, it’s very hard to have the right to the unconnected — to talk to a person, to do something, to be able to complain without using Twitter, or to be able to ask something without using WhatsApp,” he pointed out. “You see that every day. So if you don’t have the right to be outside whatever some person wants to invent that’s a problem because it’s not a consensus between all the people to do that. So I think that sometimes we’re being forced by technology. And ethics is always [lagging] behind.”

“I think we are moving too much to perception,” he also warned. “We don’t understand reality… How many people will become addicted and then we’ll have another kind of problem — of mental health. Because there’s already people addicted to these things. There’s many people who are really addicted to gaming — and this [immersive metaverse] is one step forward.”

“The best case scenario is a metaverse that is respectful to the analogue,” suggested another of the panellists, Carissa Veliz, an associate professor at Hertford College University of Oxford, also speaking up for the richness of living in the real world. “There’s so much richness in the physicality of life, in how we feel when we see someone in person, when you embrace someone, when you go to a coffee shop and meet with friends.

“Virtual reality can be very rich, and it has a place and it can enrich our lives. But it can never substitute for the physicality of life. So if we neglect the physicality of life — in virtue of the digital — we’re gonna regret it. And by the time we regret, it’s too late. Because the coffee shop has closed, and it cannot be recovered. So the way ahead, is to cherish the analogue as well as a digital.”

“There’s so much a stake,” she added. “Our way of life is at stake. Democracy is at stake. So yes, we have to convince corporations that there is a competitive advantage in being ethical — in having privacy.”

There were not that many people physically sitting in the hall to listen to this panel (albeit, some of the MWC23 keynotes were streamed) — and the audience seemed a bit disengaged from the discussion. But, frankly, it was hard to hear what the speakers were saying (Baeza-Yates had been given a particularly crackly microphone) — let alone start to unpack all the nuanced issues they were raising in the quantum of time allowed.

Conference-goers could also be forgiven for being distracted by thoughts of how to achieve their next coffee ‘pitstop’ — far from any friendly local coffee shops. Tracking down places to get fed and watered at MWC is a very tedious business — involving long walks and queues and paying airport-style prices for airport-quality fare (after which you typically have to hunker down on a corner of bare carpet to eat your expensive plastic salad bowl as all the chairs and tables are already taken). In such hostile physical surroundings, the prospect of being able to teleport into a 3D world and attend a virtual version of the conference almost felt like a disruptive use-case for the metaverse. But, well, that’s probably not the massive selling point the tech industry is dreaming of.

In any case, not attending MWC in person would have meant missing out on experiencing some of the things this year’s exhibitors were touting as metaverse experiences.

Case in point: If you walked a little way over from the hall where HTC’s Wang Graylin had suggested there’s no true metaverse tech to be tapped into yet — and you were willing to queue up for maybe an hour (or just blag your way to the front by claiming to be an influencer), you could take a trip in a VR urban mobility ride parked at SK Telecom’s stand — which was explicitly branded an “AI metaverse” experience.

SK Telecoms urban mobility vehicle AI metaverse experience at MWC 2023

Image Credits: Natasha Lomas/TechCrunch

TechCrunch took a very similar VR trip at MWC a full seven years agothe main difference being the earlier VR ride installation was a ground-tethered hot air balloon. (VR + hot air? Yes, really.)

Back then, there was no talk of metaverse; it was all virtual reality hype. (And, well, we know what happened next.) But both these VR rides delivered a very similar experience of scary mock proximity, with the craft seemingly (not actually) soaring alarmingly close to virtual objects that left you clutching on to the physicals for dear life and hankering to be back on terra firma.

Both rides also left a stomach churning sensation that lingered like a bad lunch. So if this is really a taste of the metaverse it’s going to be a tough sell.

But if HTC’s Wang Graylin is on the money, neither of these experiences is really metaverse (yet).

And, well, we tend to agree. Both rides felt more retro than next-gen — harking back to arcade (or fairground) simulator rides from the 1980s. (The ones that paired high octane on-screen motion with jerking locomotion as the faux car you were strapped into jigged atop a cluster of pumping pistons for a thrilling (or sickening) few minutes.)

The updated urban mobility joyride SK Telecom was showing off was immersive enough, sure. We even had to close our eyes a bunch of times to avoid feeling quite so unwell during the visually erratic flight. But, basically, it served up the same rollercoaster-style stomach lurches and drops as the VR hot-air balloon, all the way back in March 2016. Nor was there an obvious improvement in the quality of the content all these several years later. The vista of the high rise harbor city we ‘flew’ around this time looked more myopic than crisply rendered — even mediated through the more modern VR goggles strapped to our faces in 2023. (Screens in 80s’ simulator rides weren’t exactly high def, either of course, but those rides could still give you full-throttle motion sickness.)

At bottom, it’s the same (old) trick. The human brain doesn’t need a lot of stimuli to feel physically unsteady — just sit on a stationary train as another passes slowly by and you can feel like the carriage you’re sitting in is rolling backwards. Certain visual illusions can create a feeling of self-motion (vection), as a result of a large part of your field of vision moving, which may also trigger vestibular illusions (dizziness, vertigo etc) that can leave you with biomechanical illusions (aka, sea legs) once you’re done.

And getting shakily out of SK Telecoms’ mock flying taxi at the end of our brief virtual trip that didn’t really lifted off the show floor we could check off a bit of all three… Tbh, though, it feels like the far bigger trick for the metaverse to pull off would be to deliver a stable, comfortable virtual world experience — one that doesn’t leave the user feeling dog-sick and hankering to get back to the real world.

Bottom line: The idea of spending long stretches of ‘effortless immersion’ in virtual 3D worlds — without nausea, eye strain, headaches or vague and/or unpleasant sensations of discombobulation — still sounds like pure science-fiction to this reporter, more than half a decade after our last unpleasant ride on this hype train.

Far better devices and radically retooled networks — not to mention an infinite supply of amazing content — are going to be needed to get to a more comfortable and/or capable place, metaverse evangelists suggest. None of which are on the horizon as far as we can see. (Unless you’re betting on Apple’s long rumored but much delayed mixed reality headset being a category game-changer — if/when it does eventually land.)

Plus, if you believe Europe’s carriers, the network side of things won’t be ready for lift off unless/until we’re prepared to let telcos generate revenue off of others’ digital content and creativity — with goodness knows what kind of implications for the stuff we get to experience online.

Let’s get phygital, phygital…

All these hard realities haven’t stopped the industry’s metaverse hype train leaving the station, of course. And all four speakers on the ‘future, a fad or a fraud’ panel — which also included reps from telecoms kit maker ZTE; and Tonomus/Neom, a Saudi Arabia-based smart cities builder — duly voted metaverse is “the future” — violently agreeing that some form of ‘phygital’ experience (to use an even less lovely neologism we also saw being bandied about during the week) — is 100% inevitable. Just like the arrival of that oncoming train in the Matrix.

Will humanity leap out of the way of the metaverse hype in the nick of time — or be struck full in the face? We’ll just have to wait and see.

Oddly enough, given the metaverse-heavy programming, Meta — the tech giant formerly known as Facebook before it pivoted to rebrand as “Meta: a metaverse company” — had a very low-key presence at the show. Earlier last month, Kevin Salvadori, its VP of networks, had been listed as a speaker on the ‘future, fad or fraud’ panel. But perhaps he reconsidered when he saw the title — because, on the day, his name went unmentioned and a Meta spokeswoman that we spotted on the show floor was unable to explain why.

A few weeks earlier, the social networking giant had told us it wouldn’t have any spokespeople available to talk about its vision for the metaverse at MWC. (Global affairs VP Nick Clegg was presumably too busy to pop to Barcelona after his recent trip pressing royal flesh in Dubai — a place that’s apparently intent on becoming a top 10 metaverse economy by 2030, whatever that means). So it appeared that the original metaverse cheerleader wouldn’t be showing off its tech in Barcelona.

However we spotted a tiny Meta-branded demo stand tucked away alongside the ministerial program area on an upper walkway above the show floor.

A spokeswomen manning the stand told us the installation had been set up so it could demo its mixed reality product (Quest) to policymakers without them needing to make a detour to see it. Which didn’t exactly sound like a massive vote of confidence in the pull-power of the technology. But she also said Meta had a larger, private demo area at the show — viewable by invite only. (Apparently not intended for press either.) So it’s funny to consider how much of the ‘way-paving’ for future virtual world-building is going on behind closed doors, out of our ear-shot.

Meta's demo stand for Horizon Quest at MWC 2023

Image Credits: Natasha Lomas/TechCrunch

How long will it be before some kind of metaverse exists for anyone to hop into? To our eye that’s a bit like asking how long is a piece of string. But HTC’s Wang Graylin stuck out his neck this week and suggested the full Neal Stephenson Snow Crash vision (I mean, assuming humanity actually wants that!) could be as soon as five years away! Or, well, possibly ten.  

“A lot of people think that the metaverse is already here. I just want to re-emphasise we’re just starting to get into that process,” he said. “For the metaverse as it’s intended, as it’s described in something like Snow Crash, we’re probably five to 10 years away… A lot of people say ‘Oh, we’re building the metaverse or we’re building a metaverse’. None of those are really true. If they’re telling you that they probably don’t know what they’re talking about.”

He went on to predict that “most people will migrate to an XR device to do a full immersive experience in this 3D Internet” over this several year/up to a decade-long period — laying out a rose-tinted scenario under which the former smartphone-focused VR headset maker is set for a massive upswing of fortune in the coming years, from VR niche ‘zero’ to mainstream metaverse ‘hero’. Which sure sounds convenient for his employer.

What exactly he was basing this bullish forecast on (besides wishful thinking) wasn’t clear. But he did volunteer the idea that China could be the first country to create a critical mass of momentum which drives the development needed to turn a fictional concept into a real-world reality.

“There’ll be places like China that will try to create a national managed metaverse across multiple enterprises that are running within that region,” he predicted. “Whichever [government] creates a large enough critical mass will be able to teach us a lot in terms of having a multi-100 million or billion user type of environment — will teach us what is the proper way to manage a 3D Internet? And the types of experiences, the type of services that are going to be needed. And the types of equipment that will be preferred, etc. The topic and use-cases that will be most suitable.

“So I think China is actually in a very good position to be one of — or if not the first country — to create a billion person metaverse experience. And I think could actually be very helpful for creating learning about the task to the rest of the world.”

Unfortunately, the panel ran out of time to delve into what a billion person metaverse entirely controlled by the Chinese Community Party might look and feel like for citizens living under the regime’s tight societal controls. (Or indeed for Uyghur Muslims — whose very physical existence China stands accused of trying to wipe out.)

The speakers also didn’t have time to weigh in on what the rest of the world might ‘learn’ from watching the development of a massive state-surveilled metaverse in China — but hopefully the main takeaway from that would be what not to use metaverse technologies for.

Earlier in the session, Nokia’s Shannon had offered her own fuzzy prediction on when something truly worthy of the metaverse label might exist. But she mainly encouraged delegates not to sweat such details — and just lean into making it happen — suggesting that, like the Internet, it’s a case of build it and they will come. All you need to do is believe! (Or “imagine possible”, to borrow another of the show floor slogans we cringed over.)

“Where we are in terms of the metaverse is kind of the 1993 time of the internet,” she said. “We’re at a point where we can see that there’s something here. We’re not really sure what it is — so we really have to, and this sounds kind of silly, we really have to believe. And we really have to build the infrastructure. Because once the infrastructure is in place, the entire end — all the way from the headsets, through the networks, to the data centres to the cloud — when all of that’s in place, that’s when the creatives can come in and show us what this thing is really for.

The GSMA’s annual conference is always big on buzzy talk of ‘accelerating the future’ into humanity’s eyeballs — whatever flavor happens to be in fashion at the time (4G, 5G, ‘intelligent connectivity’, AI etc etc); and usually without really stopping to ask if the claimed next innovation is what most of us want or need (or just another way to try to package and sell more stuff). But the scale of change required to shift the mixed (and at times messy) reality of how humans currently communicate with each other digitally — into some kind of ‘whole body’ real-time networking experience, without that being either horribly gimmicky, violently unpleasant or just a cripplingly expensive form of social gaming — looks truly staggering.

Clearly, a Snow Crash-style scenario isn’t going to arrive overnight — if, indeed, that ever happens. (And it pays to remember that, in the book, the real world has been trashed by corporate interests — giving humans an incentive to plug into a virtual alternative in order to escape a grindingly awful meatspace existence. So the fictional metaverse should really stand as a warning against allowing the hyper-commercialization and transactional capture of public spaces. Except no one in tech seems to have gotten the message.)

But if human communication is really going to be routed down a path of increasingly immersive, pervasive, real-time 3D virtual connectivity, it sets up plenty of hardware and network kit makers to cash in on (at least) building out the infrastructure — giving them a strong commercial case to set the hype train in motion.

Their use-case is simply making bank for decades to come by being paid to install all the high-density networks and devices a world of metaverse(s) demands. So there’s no great mystery underpinning the muscular evangelism on show at MWC. And the sight of all this hype rumbling down the conference tracks offered a strange semblance of post-pandemic normality — recharging the usual tech industry hype cycles. (Setting up for a routine plunge back into the trough of disillusionment a few years hence, we’d wager.) 

It did kind of miss the boat this year, though. So while, in the world outside MWC, a real breakthrough buzz was crackling around generative AI tools like ChatGPT and Stable Diffusion, the conference agenda had obviously been programmed months before this penny dropped — with panels on everything from the industrial metaverse, to metaverse enterprise solutions, to how metaverse/AI/VR will change education and plenty more — vs little we could find that directly addressed the disruption being generated by generative AI right here and now. 

(Yet another metaverse panel TechCrunch didn’t have time to swing by, given the linear inconvenience of moving across a meatspace confab as vast as the MWC’s eight sprawling halls, considered whether mobile network operators should have a chief metaverse officer? We can only suggest they wait a few years before nailing down that hire.)

Generative AI did creep into the metaverse chatter, though. (And we fully expect to see the field filed under the overarching metaverse umbrella soon enough.)

HTC’s Wang Graylin suggested generative art will solve the 3D internet’s content problem by making it exponentially quicker to create immersive environments for users to hover around in vs doing all that world-building manually. “The biggest thing holding back the metaverse is not network. It’s not hardware. It’s [not] any specific technology, it’s just the lack of quality content,” he suggested. “Once there’s good content, good use case, even [if] the hardware is not perfect, even if the network is not perfect, people will use it.

“I remember when we were using Atari devices. This little white box and those little [paddles], and we were excited about it, right. That was not high fidelity. That was not immersive. But people got into it. And this is, you know, 40 years ago. So, you know, fidelity is not the reason holding back the metaverse.”

Nokia’s Shannon also enthused about the potential for a mash-up between the metaverse and generative AI-powered coding tools — suggesting users will be telling their future smart specs to code them custom macros on the fly — such as by recording and labelling video clips of people they’ve met in certain contexts to create a library of stuff they could refer back to later (she didn’t dwell on the ethics or privacy implications of such a feature, mind).

“[The] democratisation of coding may be the most powerful thing that this combination of the metaverse and generative AI brings,” she gushed. “And we’re not gonna recognise this, we can’t even imagine where this is going, frankly.”

Enter the metaverse keynote session at MWC 2023

Image Credits: Natasha Lomas/TechCrunch

However the laundry list of developments needed before a virtual space akin to a Snow Crash-style metaverse could even begin to feasibly lift off the page — and achieve a digital approximation of 3D life — looks long indeed. Generative AI alone isn’t going to move the metaverse needle.

Another speaker who got plenty of solo time on the keynote stage, Nicole Lazzaro, president and founder of XEODesign — a “player experience design consulting company” (while she’s a self-professed “metaverse architect”, as her LinkedIn puts it) — gave a flavor of the neverending to-do list before an entrance to a boda fide metaverse could even exist to let anyone inside.

“We need to cooperate with standards and interoperability,” she began, with the deceptively simple-sounding big picture stuff. “We need generative AI and user created content to fill these worlds — if we want to deal on a planetary scale. And we needed economies to reward and incentivize longer session interactions. So technologies such as crypto mobile payments, edge computing. We need innovation partners to build compelling use cases.

“We need world segmentation and semantic segmentation, world meshing, location anchors. All of these technologies — but put them, not just so that they exist in the world as tech, but actually create experiences for people. And we of course need standards. And this is kind of my favourite one, as a designer-developer: This is the MPEG 4 standard that’s in process right now. And just imagine what could we do with these other layers? A layer for volumetric video, a layer for holographic media… So the video that you play on your devices now are going to have other additional layers, smart contracts. And, in the future, game mechanics, player sentiment. A lot of very interesting things. And a lot of these different layers too… delivery of six [degrees of freedom] media, audio six stuff, haptics that are 3D. All of these things are coming.”

Lazzaro’s take on what the metaverse is actually for — i.e. what are the transformative use-case/s all this complex development is wending its way toward — was a lot less tangible a list.

For starters, the use-cases she sketched sounded more like Disney clichés than radically new ways of being human. Plus, after she’d finished setting out her pre-prepared metaverse wish-list she suggested all this stuff is actually already possible, using existing technologies — so not novel experiences uniquely deliverable via total immersion in the tactile, full-body stimulating simulations of the truly immersive future then?

Or, well, unless her suggestion was that all this next-gen tech will deliver something so hyper-realistic, as a life experience, that people will actually be able to live in these metaverse alternative realities… (Which is of course literally the plot of the Matrix; another sci-fi dystopia where the eponymous, hyper-realistic simulation is just a manipulative nightmare that’s been designed to deprive humans of real stimuli and genuine social connection in order that they can be enslaved for the equivalent of profit by, er, AI… )

“What do you dream about doing in metaverse?” she asked the suits in the auditorium, before laying out her own blue-sky thinking in verbal post-it-note form. “I want to explore Aladdin’s cave — new forms entertainment. I want to gather gems with my bare hands. Like we see here — this is done on Magic Leap. I basically filled this room with CGI trees, hung the treasure, and you can grab it — you can solve puzzles with your body — gather treasure and solve puzzles — so that you can capture the land.

“And where do I want to study? For me, it’s the Library of Alexandria. I want to learn from books to come to life. Here’s where I’d like to learn about the Alhambra, for example. And then after studying, I want to have tea-time with my friends — you know in the library inside the teacup. And I want this to be a venue that can change its AR location, or AR declarations if you will, as easy as printing a new menu.

“I want to then go and participate with my friends — and we’ll solve a diamond heist that takes place across the city — past a series of local landmarks with a secret past. And involve all my friends and play. And then lastly, I want to design a business — with virtual escape room templates and create theme parks that I can rent and sell to my friends. I’d love to put my business online.”

Playing, puzzling, socializing, gambling? It’s almost like tabletop board games should be classified as a proto-metaverse technology.

Away from the glare of the stage spotlight, TechCrunch was reassured to find a little more reality among startups we talked to. Including a couple we found filed under ‘metaverse’ in the exhibitor listing of the official MWC app. Such as South Korea’s Avatory, a realistic avatar builder whose marketing materials talk about making technology to let users “express one’s true-self in the metaverse”. In person, a company rep admitted they’re not actually waiting around for something called the metaverse to happen — but are building technology for existing use-cases like social media.

He even suggested the customizable avatars could be used to embody generative AI chatbots — to sub for human teachers in remote learning use-cases, given actual human teachers may not always be available. (But didn’t try to claim that would amount to a metaverse moment.)

Another startup we talked to, a hardware business out of Israel called Wearables Devices, was demoing a touchless input technology it’s targeting at the face-computing future — with a goal of “setting the input standard for the metaverse”, as it puts it. But even this had been designed to offer something in the here and now — either as a tool to let people interact with content in current-gen AR; or to act as a touchless remote-control for different connected devices (without having to go and physically fiddle with each one).

The conductive wristband the startup was showing off sensed the wearer’s hand movements and finger gestures via the electrical signals they generated — which it then converted into physical inputs, enabling the equivalent of ‘metaverse-ready’ mid-air swipes and clicks. The skin-conductive tech was mounted inside an Apple Watch band, with a companion Watch app for switching between connected devices for the touchless inputting.

A spokesman told us that although it’s putting the product out there for earlier adopters they’re anticipating Apple creating a bigger wave of adoption for AR — the primary use-case for its Mudra Band — when it finally launches its long fabled mixed reality glasses.

He also didn’t deny that, by being early with a novel interface device for mixed reality, it may be hoping to turn heads in Cupertino — positioning itself as a possible acquisition target, given Apple has been known to pick up smaller technology companies, from time to time, as it builds out its own platforms.

Either way, betting on Apple generating momentum for AR in the not-too-distant future seems a far more solid strategy than tethering your fortunes to a fictional concept.

Wearable Devices MWC demo

Image Credits: Natasha Lomas/TechCrunch

Inside the metaverse hype train at MWC 2023 by Natasha Lomas originally published on TechCrunch

https://techcrunch.com/2023/03/03/inside-the-metaverse-hype-train-at-mwc-2023/

How Scout Motors plans to bring rugged, retro cred to the EV era

1971 SCOUT 800B COMANCHE WHS 8732

“We’re operating out of everywhere,” Scott Keogh said with a laugh in his first interview as CEO of Scout Motors, the American EV upstart spun out of VW Group.

While most established automotive players call the shots from sprawling, corporate palaces, Scout bases much of its operations — at least for now — out of a WeWork near Washington, D.C.

Scout Motors’ base of operations will eventually “anchor” near the $2 billion factory in South Carolina that was announced Friday, but Keogh believes remote work will be key to Scout Motors’ success. The company already has critical employees working remotely around the United States and overseas.

“I believe firmly that era is over,” Keogh said of the classic days of centralized organizations. “I don’t think it exists anymore in the spirit of Americans, in the spirit of the company.”

Origins

Capturing the spirit of Americans is a big part of what Keogh hopes and plans to do with Scout Motors, an all-electric brand launched with a $100 million investment from Volkswagen that plans to start shipping its first vehicle, an off-road focused SUV priced around $40,000, by the end of 2026. Scout was the former consumer automotive brand of International Harvester, which ended production in 1980 in the wake of labor disputes and the 1979 energy crisis.

A 1971 Scout 800B Comanche. Image Credits: Scout Motors

The original International Harvester Scout was a go-anywhere, do-anything utility vehicle, following in the footsteps of the original Jeep but with a more practical, enclosed body five years before the Ford Bronco bolted onto the scene. “In our minds, Scout sort of planted the seed, and if you look at almost every SUV, they’ve basically stolen that name and done some modification of it,” said Keogh, who then fired off familiar nameplates like Trailblazer, Pathfinder, Explorer and Discovery.

Those models may be derivative, but they have one significant advantage over Scout: They’ve all been in production at some point within the past 40 years. Scout, meanwhile, is in the difficult position of trying to honor the past while making up for nearly a half a century of lost time. If that weren’t enough, Scout has to distance itself from Volkswagen, too.

Keogh used the phrase “clean slate” four times during our interview, in reference to everything from software to dealership presence. With its Volkswagen ties, Scout Motors seemingly has a distinct advantage over other EV startups in that it could theoretically piggyback into the hundreds of U.S. VW dealers. However, Keogh says, there are advantages to following the trail blazed by Tesla in defining a way for manufacturers to sell cars directly to consumers.

“We have not decided, but we’re taking a long, hard look at it,” Keogh said about online direct sales. Historically, he said, manufacturers dominated the scene, but lately the dealerships have been calling the shots, often at the expense of everyone else. “It’s always been an industry that played more towards legislation, industrialization, networkization, as opposed to what’s the best consumer experience,” he said. “This is the differentiator: Awesome retail experience focused on the customer, focused on technology.”

Launch target

Scout Motors will launch its first two EVs in quick succession starting in late 2026, Keogh confirmed.

First will be a small, off-road focused SUV that Keogh calls an RUV: a “rugged utility vehicle.” The second is a larger truck, which will “lean a little bit more on-road” in terms of its driving characteristics. Details like range and power aren’t yet set, but pricing for the RUV is meant to start in the $40,000 range, while the truck will be “a bit north of there.”

Neither, though, will be lacking in off-road capability, a brand new focus for the Volkswagen Group.

Both vehicles will be built on a bespoke, body-on-frame platform of the sort historically used by the most capable off-road machines. Manufacturing will take place in the United States, at the company’s newly announced factory in Columbia, South Carolina.

Image Credits: Scout Motors

A battery partner has not been announced, but Keogh was adamant about structuring suppliers to take full advantage of the EV incentives offered by the Inflation Reduction Act, which has domestic production requirements.

Scout’s new EV platform will share some components with other Volkswagen Group cars, items like HVAC components, motors and inverters. But that’s where the similarities end. Scout Motors is aiming to offer driving character and capability unlike anything else under VW Group, a behemoth company that includes a long string of EV platforms. VW Group created the MEB that lies beneath the Volkswagen ID.4, its successor MEB+, the J1 Performance platform under both the Porsche Taycan and Audi E-Tron GT, and the upcoming PPE platform for the upcoming Porsche Macan EV.

In addition to a bespoke platform, Scout’s cars will also take radically different approaches to software integration and the overall user experience. Some core aspects of the software will be provided by Cariad, the software arm of Volkswagen. Keogh said the base software architecture is in place. The user experience will be radically different, he added.

Keogh points to physical touchpoints as a main differentiator. VW’s ID.4 has been panned by many for its over-reliance on touch surfaces, for example.

“We really want to keep a lot of the mechanical nature,” Keogh said. “I think if you look at the American buyers, yes, they appreciate software, but they don’t want software to be all-dominating. I think you’ll see a lot more, let’s say old-school physicality, but in a good way.”

So no touchscreen-controlled vents à la the Tesla Model Y, then? “I can pretty much confirm yes,” Keogh told me.

Unveils ahead

Scout’s two models are set for unveiling in early 2024. The company has already had a limited screening at focus groups in California and Texas, where the prototype vehicles were stacked up against traditional offerings like Broncos and newer entries from Rivian. Keogh expected the concepts to do well among more EV-aware and friendly viewers in California, but even the feedback in Texas was strong. “We got some of the best results that we’ve ever had in clinics, period,” he said.

Scout Motors EV teaser 2023

A teaser image of two Scout Motors vehicles, an all-electric truck and an SUV. Image Credits: Scout Motors

And what about the Scout loyalists, who’re still repping the brand at annual events like Harvester Homecoming? “In fairness, it runs the gamut,” Keogh said of the feedback they received, with some finding the style a bit too progressive. But, Keogh says, they need to move the brand forward. “We would now be on the Scout 8,” he said, if International Harvester had never stopped making the cars after the Scout II. “Certainly you would not want the Scout VIII to be like the Scout II.”

For Keogh, the key to attracting customers is in the name. “It’s a simple line that we’ve been using, but I think it works, this concept that the world does need more Scouts. Scouts can manifest themselves in things like hiking, climbing Everest, let’s say the more extreme side of scouts, or they can be dramatically less extreme as well, to tailgating to someone who knows the latest ideas.”

While Keogh is adamant that the new Scout will honor the past, it won’t be a brand hung up on legacy like some of its gas-burning competition: “I don’t want to make Scout a fossilized retro brand that says: ‘Dear America, it’s 1977. Again.’”

How Scout Motors plans to bring rugged, retro cred to the EV era by Tim Stevens originally published on TechCrunch

https://techcrunch.com/2023/03/03/how-scout-motors-plans-to-bring-rugged-retro-cred-to-the-ev-era/

Super early-bird savings to TC Disrupt ending soon

Time is running out for you to score the biggest savings on passes to TechCrunch Disrupt 2023 — the original and always-evolving conference dedicated to early-stage startups. Beat the March 10 deadline, and you’ll save up to $1,000 on General Admission, Founder, and Investor passes. Students and nonprofits — grab a deeply discounted pass for just $95!

Get ready to join 10,000 attendees in San Francisco on September 19–21. Hit up the Disrupt stage for in-depth interviews with top-tier founders, CEOs, investors and tech-savvy celebrities — like Serena Williams and Kevin Hart — actively building or investing in startups.

You asked for more say in the programming and we heard you loud and clear. Last year, TechCrunch readers voted for the breakout sessions and roundtable discussions they wanted at Disrupt. It was a massive success, and we’re doing it again this year. Stay tuned — details to come!

All New at TechCrunch Disrupt 2023

In addition to amazing speakers, breakout sessions and roundtables, we’re bringing TC Sessions — our popular stand-alone industry events — to Disrupt! We’ll have six new stages featuring industry-specific programming tracks. Lean in to get the latest news, networking, topics, trends, startups and VCs within your sector. Check out the stages and the tech they cover.

  • Sustainability stage: Urban mobility, sustainable tech, green infrastructure and new mobilities
  • Fintech stage: DeFi, challenger banks, blockchain, NFTs and web3
  • AI stage: NLG (natural language generation), speech recognition, virtual agents, biometrics, RPA (robotic process automation), deep learning platforms, reactive machines and P2P Networks
  • SaaS stage: E-commerce, creator communities, low code, cloud-based resources, collaboration tools, developer tools and apps
  • Hardware stage: AMRs, articulated robots, humanoids, IoT, interstellar technologies and commercial hardware
  • Security stage: Data protection, privacy regulations, information sharing and risk management

Imagine the multiple cross-collaboration opportunities just waiting to be discovered — and now they’re all under one big roof!

TechCrunch Disrupt takes place in San Francisco on September 19–21, but if you want the best price and want to save up to $1,000, you need to buy your pass before prices increase. The deadline is Friday, March 10 at 11:59 p.m. PT, but why wait? Buy your Disrupt pass today!

Is your company interested in sponsoring or exhibiting at TechCrunch Disrupt 2023? Contact our sponsorship sales team by filling out this form.

Super early-bird savings to TC Disrupt ending soon by Lauren Simonds originally published on TechCrunch

https://techcrunch.com/2023/03/03/super-early-bird-savings-end-soon-techcrunch-disrupt-2023/