Andrew Bosworth, Chief Technology Officer of Facebook, speaks during Meta Connect event at Meta headquarters in Menlo Park, California on September 27, 2023.
Josh Edelson | AFP | Getty Images
At Meta’s annual Connect conference this week focused on virtual reality and the metaverse, one word was on everyone’s lips: Apple.
Meta CEO Mark Zuckerberg was enthusiastic in debuting his company’s Quest 3 VR headset, which starts at $499 and will begin shipping in October. His company touted the growth of its VR app store — Quest Store — which has generated $2 billion in sales since its debut in 2019, up from the $1.5 billion the company announced last year during the conference.
The big difference this year from the event in 2022 is that attendees have a much clearer picture of Apple’s upcoming entry into the VR market.
The iPhone maker in June announced its Vision Pro mixed-reality headset at an eyepopping price of $3,499 when it goes on sale next year. While it’s Apple’s first major foray into VR, the company’s longtime dominance in premium consumer devices and its winning reputation in hardware has created a buzz that was missing from Meta’s prior industry events.
VR and mixed reality are expected to remain niche markets for years to come, but conversations with nearly a dozen attendees who gathered at Meta’s Menlo Park, California, headquarters this week show the tone is changing for developers and VR companies regarding the potential for an expanding industry.
“There’s curiosity for sure with Apple entering the market,” said Tom Symonds, CEO of the UK-based VR firm Immerse. “Apple has always been able to marry the hardware and the software in a seamless way.”
Prior to Apple’s Vision Pro announcement, the VR industry was going through a bit of an identity crisis, with venture capitalists pulling back their investments alongside the drop-off in Web3 and related crypto projects. Meanwhile, Meta has been losing billions of dollars a quarter building its vision of a metaverse, and Zuckerberg has shown no interest in slowing down, frustrating many Wall Street investors who see only mounting costs.
Apple CEO Tim Cook stands next to the new Apple Vision Pro headset.
Even though Apple’s product won’t go on sale for months and it’s unclear how many people will want it or be able to buy it, the company’s entry has given a sense of legitimacy to some of Meta’s efforts.
In addition to showing off its latest headset this week, Meta debuted the newest version of its Ray-Ban smart glasses, developed with EssilorLuxottica. The new glasses, which will cost $299 when they’re available to purchase on Oct. 17, use Meta’s artificial intelligence software via a smartphone so people can identify landmarks or translate signs when looking at various objects.
‘Pushing the bar’
It would have been a “big loss of confidence” if Meta stopped investing heavily to push the VR market forward, said Aneesh Kulkarni, chief technology officer of the VR training firm Strivr.
“Meta is pushing the bar, and who has the money to push the bar?” Kulkarni said.
He added that while $2 billion of app store sales “may not sound like a lot compared to the Apple store,” it’s a big and important number. Apple has a giant marketplace — $1.1 trillion in developer billings and sales in 2022 — because of the popularity of iPhone and iPad apps.
Josette Seitz, a mixed-reality developer for the social impact company Baltu Technologies, said Apple could have an advantage courting businesses that already use its products, like those that employ iPads to help conduct maintenance and other related services. A company that currently supplies field workers with iPads for inspections or similar tasks could conceivably make the easy transition to the more immersive Vision Pro because of the devices’ interoperability, she said.
At its high price point, the Vision Pro will likely be more of a product for businesses, Seitz said. Regardless, it’s important to have more entrants in the market.
“There shouldn’t just be one company,” she said. “We can’t have this be a monopoly system.”
Gaspar Ferreiro, a developer with the VR firm Coal Car Studios, called the Vision Pro’s price “insane” and said Apple is taking a “big gamble.”
“Enterprises will absolutely take the gamble,” Ferreiro said, noting some businesses will splurge on Apple devices because of the company’s reputation and prestige.
Meta still faces its own challenges. The company has struggled to bring VR into the mainstream despite a yearslong head start, and Ferreiro isn’t sure that the Quest 3’s improvements over the Quest 2, which is $200 cheaper, will be enough to win new customers who aren’t industry insiders or developers.
“The general consumer is probably going to be faced with a conundrum, do I spend another $200 on this other device?” Ferreiro said.
One of the Quest 3’s biggest improvements over the previous version is its so-called “passthrough” feature, which converts a person’s field of vision into a digital format, thus allowing computer visuals to be overlaid on to the physical world. Looking at physical surroundings using the Quest 2 proved to be a blurry experience that lacked color, but with the Quest 3 it’s much clearer and should be more enjoyable to use.
For developers, Ferreiro said, that translates into the ability to create more compelling content and visually attractive experiences that integrate the physical and digital worlds.
Jeffrey Morin, CEO of the Litesport VR fitness service, said the Quest 3 is priced “just outside of my comfort zone for, like, me buying my kid a Christmas gift.”
But he agrees that improved passthrough is very valuable and was crucial for the company’s upcoming mixed-reality app it created for Xponential Fitness that will let users work out with real personal trainers who can be virtually beamed into their living rooms.
As far as working with Apple, Morin said Litesport will look for ways to develop for the Vision Pro as it evolves and the price potentially drops to between $1,000 to $1,500 in the future. Initially, the price is too high and the Vision Pro will require users to wear a battery pack, creating an added nuisance during a workout.
The advantage Apple offers is a base of customers who “are going to be way more likely to pay for a subscription,” providing a recurring source of revenue, he said. Based on Morin’s experience thus far, most current Quest users are gamers who are more accustomed to making one-time app purchases.
Morin said that even though Apple’s product isn’t out yet, he noticed an increase in the number of people using Litesports’ VR fitness apps once it was announced, underscoring the VR community’s overall excitement.
“They fired up their headsets and they’re, like, let me see what’s out there again,” Morin said.
Ultimately, Apple’s move into VR is proof that it’s not just an ambitious Facebook side project.
“It’s not like Mark’s little toy anymore,” Morin said. “Now it’s everyone’s.”
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. 1. The S & P 500 jumped 1.1% Thursday as the AI trade was back in full force following Nvidia ‘s blowout quarterly earnings. Shares of the chipmaker were up more than 4%, while peer Broadcom , a fellow Club name, surged nearly 6%. Wall Street also digested the delayed September jobs report , which showed that 119,000 jobs were added, well above the estimate of 51,000. The data was positive. But the October print will matter more as the Federal Reserve decides whether to cut interest rates at its December meeting. 2. Palo Alto Networks delivered a better-than-expected quarter on Wednesday evening, featuring beats across every single key metric, such as adjusted earnings per share (EPS), total remaining performance obligation (RPO), and next-generation security annual recurring revenue (ARR). ARR is important because it can demonstrate the success of the company’s subscription-based business model and its “platformization” strategy of bundling its products and services. Management also announced plans to buy cloud management and monitoring company Chronosphere for $3.35 billion. We like the deal because of Chronosphere’s ARR growth, which will make analysts even more bullish on our cyber stock. 3. Eaton announced Thursday that CFO Olivier Leonetti will leave the power management solutions provider next year as part of a planned transition. Leonetti will remain in his role until a successor is named. Management also reaffirmed Eaton’s 2025 guidance. The leadership change doesn’t impact our thesis on the industrial stock, though. It would be a red flag, Jim said, if it were a sudden transition. “You need a really long transition,” he added. Otherwise, investors will worry about the company’s stability and future. Jim continued, “You give them a year that’s really planned.” 4. Stocks covered in Thursday’s rapid fire at the end of the video were: Walmart, Abbott Laboratories, Williams-Sonoma , Block, and Jacobs Solutions . (Jim Cramer’s Charitable Trust is long NVDA, PANW, AVGO, ETN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Google on Thursday rolled out Nano Banana Pro, its latest image editing and generation tool, continuing the company’s momentum after launching its new Gemini artificial intelligence model earlier this week.
The product is built on Gemini 3 Pro, which was announced on Tuesday and contributed to record-breaking stock highs.
Alphabet’s stock was up 4% Thursday.
Josh Woodward, vice president of Google Labs and Gemini, told CNBC’s Deirdre Bosa that the Nano Banana Pro’s capabilities expand beyond its original iteration, which launched in late August.
“It’s incredible at infographics. It can make slide decks. It can take up to 14 different images, or five different characters, and sort of keep that character consistency,” he said.
He added that internal users have experimented with the feature by inputting code snippets and even LinkedIn resumes to create infographics.
“I think this ability to visualize things that were previously maybe not something you would think of as a visual medium that tends to be one of the magic things people are finding with it,” Woodward said.
The original Nano Banana went viral on social media as users turned photos of themselves or their pets into hyperrealistic 3D figurines. Woodward wrote in an X post in September that the product helped add 13 million new users to the Gemini app in the span of four days.
Nano Banana Pro is currently available in the Gemini app, with limited free quotas, Google’s writing assistant, NotebookLM, as well as the company’s developer, enterprise and advertising products.
Google AI Pro and Ultra subscribers will have access to the product in Google’s search features AI Mode.
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The feature will later also roll out to Ultra subscribers first in Flow, Google’s AI filmmaking tool.
Google introduced another feature in the Gemini app that allows users to upload any image to find out if it was generated by Google AI.
Images generated on free Nano Banana accounts will have a watermark, but it will be removed for Google AI Ultra tier subscribers.
Google has been working to gain ground on OpenAI in the generative AI race, which ignited after the release of ChatGPT in 2022.
Last week, OpenAI announced two updates to its GPT-5 model to make it “warmer by default and more conversational” as well as ” more efficient and easier to understand in everyday use,” the company said.
ChatGPT currently tops the list of free apps on Apple’s App Store, with Gemini in the second spot.
The Gemini app currently has over 650 million monthly active users per month, and Gemini-powered AI Overviews has 2 billion monthly users, Google said in a release. OpenAI CEO Sam Altman said in October that ChatGPT had reached 800 million weekly active users.
Woodward said Google AI products have had growing demand, with many users signing up for Gemini’s subscription plan to have “higher limits with some of these advanced models.”
“We’re seeing high numbers of people coming to lots of these products,” he said. “That’s really the best problem to have, is there’s a lot of demand, and we’re trying to figure out actually how to serve it.”
The company is looking to continue scaling its AI offerings, Woodward said, highlighting Flow, Google’s AI filmmaking tool, and Genie, a “world building” model that is currently available as a limited research preview.
U.S. President Donald Trump and Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia stand for a photo with Tesla CEO Elon Musk, Nvidia CEO Jensen Huang and other participants at the U.S.-Saudi Investment Forum at the Kennedy Center on Nov. 19, 2025 in Washington, DC.
Win McNamee | Getty Images
The U.S. has approved sales of advanced Nvidia chips to Saudi Arabia’s HUMAIN and the United Arab Emirates’ G42, authorizing the state-backed firms to buy up to 35,000 chips, worth an estimated $1 billion.
The approval of these chip exports marks a major reversal for the U.S., which had previously balked at the idea of direct exports to state-backed AI companies in the Gulf. Export controls were put into place to avoid advanced American technology making its way to China through the back door of Gulf Arab states.
Before former President Joe Biden left office in January, he administered a final round of export restrictions on advanced AI chips, targeting companies like Nvidia, in a sweeping effort to keep that cutting-edge U.S. intellectual property out of China’s reach.
Now, President Donald Trump is moving to expand the reach of such advanced technology in order to “promote continued American AI dominance and global technological leadership,” the U.S. Commerce Department said in a statement published on Wednesday.
The U.S. Commerce Department approved the chip exports, with the condition the state-backed AI outfits agree to “rigorous security and reporting requirements,” overseen by the Department of Commerce’s Bureau of Industry and Security.
Saudi’s Victory Lap
The export approval follows Saudi Crown Prince Mohammed bin Salman’s trip to Washington this week where the Kingdom pledged to spend $1 trillion in the U.S., up from $600 billion originally committed during Trump’s Gulf tour in May.
“Even if we don’t get to that, both sides have skin in the game,” Afshin Molavi, senior fellow at the Foreign Policy Institute of the Johns Hopkins University School of Advanced International Studies, told CNBC’s Dan Murphy.
Saudi Arabia’s AI company HUMAIN, backed by its nearly $1 trillion Public Investment Fund signed a long list of partnerships with Adobe, Qualcomm, AMD, Cisco, GlobalAI, Groq, Luma, and xAI at a U.S.-Saudi Investment Forum held in Washington, D.C this week. Notably, HUMAIN will be teaming up with Elon Musk’s xAI to build a 500 megawatt data center in the Kingdom.
“What we want to do in 2026 is to build the capacity equivalent to what Saudi has built in the last 20 years, in one year,” Tareq Amin, CEO of HUMAIN, said at the summit. HUMAIN is hoping to position Saudi Arabia as the third biggest global AI hub, after the likes of the U.S. and China.
Winning over the U.S. Commerce Department
Saudi Arabia’s HUMAIN and UAE’s G42 “have the capital to invest, the relationships with Nvidia and the (relationship with the) U.S. government,” Kamil Dimmich, partner and portfolio manager at North of South Capital, told CNBC’s Dan Murphy in an interview on Wednesday.
G42 and HUMAIN are “able to use this to build out regional infrastructure, and they want to leverage that infrastructure to become a global hub for compute,” Dimmich added.
Just two weeks ago, Microsoft secured an export license for advanced chips to the UAE. Microsoft’s key partner in the UAE is G42, but the local AI company was notably absent from the Microsoft announcement, until today.