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Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Acquired LIVE event at the Chase Center in San Francisco, California, US, on Tuesday, Sept. 10, 2024. 

David Paul Morris | Bloomberg | Getty Images

Meta announced the Quest 3S, the latest virtual reality headset to come out of the company’s Reality Labs division and a cheaper offering than its predecessor.

The device will go on sale on Oct. 15 and will retail starting at $299, down from the $499 starting price for 2023’s Quest 3. The device can be used to watch movies, as well as run VR fitness apps and gaming, Meta said Wednesday at its Connect event at its headquarters in Menlo Park, California. The company positioned the headset as a multitasking computer, putting it in competition with Apple’s $3,499 Vision Pro headset that launched in February.

Meta’s previous Quest devices are the bestselling VR headsets, with millions shipped thanks to heavy marketing and a lower price than many competitors, but those efforts have yet to spark a cultural phenomenon or a mainstream software ecosystem around VR. Including its acquisition of Oculus in 2014, Meta has poured more than $65 billion in expenses into its hardware efforts.

“I’ve been waiting for this one for a long time,” Zuckerberg said.

Meta CEO Mark Zuckerberg has defended the company’s spending as a strategic initiative to prevent Apple from controlling future hardware platforms.

Although there was hope among VR developers that Apple’s entry into the market would spur a wave of new apps and users, Apple hasn’t revealed sales for its headset and reports say that sales have been in small volumes, under 1 million units, partially due to its high price.

What it does

A Meta representative said the “S” stands for “start” — as in getting started with VR.

Many of the new Meta features that the company discussed on Tuesday for its $299 Quest 3S have counterparts on Apple’s Vision Pro, including a mode that allows for the device to be used on an airplane and another that simulates a large movie theater inside the headset.

Meta highlighted improved “passthrough,” the term used to described when a VR headset uses cameras and sensors on the outside of the device to display live real-time video inside the headset. That function is intended to make users feel like they are looking through a display and allows them to interact with the real world while keeping the headset on. For the Quest 3S, Meta added a dedicated button to turn on passthrough.

The company has emphasized the ability of the Quest 3S to multitask and run apps, positioning it as a computing device, instead of a game console.

“All the things you can do with a general purpose computer, Quest is the full package,” Zuckerberg said.

In demos provided Tuesday, Meta showcased the device running as many as four apps at one time on floating screens inside the headset, including a YouTube video, a browser, Amazon Music and Meta’s app store. Meta says the headset can handle six windows. But the demo experience was not smooth. The Amazon Music app crashed, window controls would disappear and Meta’s controllers would fall asleep after a few minutes if the user wasn’t pressing buttons.

Besides the Quest 3S, Meta also announced a price cut for last’s year Quest 3, bringing the price of the 512GB version down from $650 to $500. The Quest 3 has more advanced lenses and a superior screen with a higher resolution than the Quest 3S.

Additionally, Meta said it will discontinue the Quest Pro, its $999 headset launched in 2022 that never gained much momentum.

Eventually, glasses

Meta Orion AR glasses prototype

Meta

Zuckerberg’s justification for spending so much on VR and augmented reality is his belief that the technology will eventually end up in lightweight, transparent glasses that overlay computer graphics and information onto the real world.

Investing in VR software and hardware are early steps toward those glasses, which could take as much as a decade to develop, Zuckerberg has previously said.

Zuckerberg showed off an early concept of what those glasses could look like on Wednesday. The thick, black-framed prototype, called Orion, won’t be sold to consumers, but Meta says they will be used internally as the company continues working toward the consumer glasses it hopes to one day sell.

“This is where we are going,” Zuckerberg said.

Zuckerberg said they were Meta’s first “fully-functioning” prototype of the glasses, and would be physically tethered to a small “puck.” Zuckerberg also said that it would take advantage of a wrist-based interface, which came out of stems from the company’s 2019 acquisition of CTRL-Labs.

Meta’s Orion prototype comes a week after Snap announced its fifth-generation Spectacles AR glasses. Those thick-framed glasses will only be made available to developers, who must commit to paying $99 a month for one full year if they want to build AR apps for the device.

This isn’t the first time Meta publicly revealed a prototype of a future devices or research projects to signal to investors and employees where VR and AR technology is headed. The Orion glasses are an improvement on Project Nazare, prototype smart glasses that Zuckerberg announced in 2021, when the company changed its name from Facebook.

Ray-Ban Meta smart glasses are powered by a Qualcomm chip. Qualcomm, Samsung and Google are working on smart glasses, according to Qualcomm CEO Cristiano Amon.

Nurphoto | Nurphoto | Getty Images

Meta does sell a pair of glasses with a built-in camera in partnership with EssilorLuxottica called Ray-Ban Meta, which start at $299. While these glasses don’t have any displays, they do have tiny speakers that allow the device to play music or interact with Meta AI, the company’s voice assistant.

For example, the Ray-Ban Meta glasses can now detect when a user is looking at a sign in Spanish and, if asked, can translate in the user’s ear, a new improvement, Meta said. The camera can scan QR codes, and it can also extract information like book titles out of photos it takes. Plus, they’re stylish and look like a pair of typical sunglasses.

“One of the most important things about this is they’re just good-looking glasses,” Zuckerberg said. 

Another new capability for the glasses is the ability to remember facts like where the user parked. 

Li-Chen Miller, the vice president of product in charge of Ray-Ban Meta glasses, told CNBC that when she travels, she uses the glasses to take photos of her hotel room door, and later, she asks Meta AI to recall the number. 

Zuckerberg is excited about the Ray-Ban Meta smart glasses, which have sold more than 730,000 units in their first three quarters, according to market researcher IDC. In July, he told investors that they were “a bigger hit sooner than expected.”

Last week, EssilorLuxottica and Meta announced that they had extended their partnership to develop more smart glasses.

AI that speaks

Meta chatbot to use celebrity voices

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Nvidia says its GPUs are a ‘generation ahead’ of Google’s AI chips

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Nvidia says its GPUs are a 'generation ahead' of Google's AI chips

Nvidia founder and CEO Jensen Huang looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025.

Brendan Smialowski | Afp | Getty Images

Nvidia on Tuesday said its tech remains a generation ahead of the industry, in response to Wall Street’s concerns that the company’s dominance of AI infrastructure could be threatened by Google’s AI chips.

“We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google,” Nvidia said in a post on X. “NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.”

The post came after Nvidia saw its shares fall 3% on Tuesday after a report that Meta, one of its key customers, could strike a deal with Google to use its tensor processing units for its data centers.

In its post, Nvidia said its chips are more flexible and powerful compared with so-called ASIC chips — such as Google’s TPUs — which are designed for a single company or function. Nvidia’s latest generation of chips are known as Blackwell.

“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” Nvidia said in its post.

Nvidia has more than 90% of the market for artificial intelligence chips with its graphics processors, analysts say, but Google’s in-house chips have gotten increased attention in recent weeks as a viable alternative to the Blackwell chips, which are expensive but powerful.

Unlike Nvidia, Google doesn’t sell its TPU chips to other companies, but it uses them for internal tasks and allows companies to rent them through Google Cloud.

Earlier this month, Google released Gemini 3, a well-reviewed state-of-the-art AI model that was trained on the company’s TPUs, not Nvidia GPUs.

“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs,” a Google spokesperson said in a statement. “We are committed to supporting both, as we have for years.”

Nvidia CEO Jensen Huang addressed rising TPU competition on an earnings call earlier this month, noting that Google was a customer for his company’s GPU chips and that Gemini can run on Nvidia’s technology.

He also mentioned that he was in touch with Demis Hassabis, the CEO of Google DeepMind.

Huang said that Hassabis texted him to say that the tech industry theory that using more chips and data will create more powerful AI models — often called “scaling laws” by AI developers — is “intact.” Nvidia says that scaling laws will lead to even more demand for the company’s chips and systems.

WATCH: Meta reportedly in talks to use Google’s AI chips

Meta reportedly in talks to use Google's AI chips

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What Dick’s Sporting Goods’ earnings report tells us about Nike’s turnaround

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What Dick's Sporting Goods' earnings report tells us about Nike's turnaround

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Musk’s xAI to close $15 billion funding round in December: sources

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Musk's xAI to close  billion funding round in December: sources

Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025.

Evelyn Hockstein | Reuters

Elon Musk’s artificial intelligence startup xAI is expected to close a $15 billion round at a $230 billion pre-money valuation next month, sources familiar with the matter told CNBC’s David Faber.

The deadline for allocation is the end of day on Tuesday, with the round expected to close on Dec. 19, the sources said.

This confirms earlier CNBC reporting that the company was raising $15 billion. The Tesla CEO later called the report on the round “False” in a post on the social media platform X.

At the time, sources told CNBC that xAI would use a large portion of the money for funding graphics processing units responsible for powering large language models.

CNBC had previously reported in September that the startup was looking to raise $10 billion at a $200 billion valuation.

The funding round is yet another sign of the insatiable demand for AI tools. Companies, including OpenAI and Anthropic, have raised billions and reached sky-high valuations as investors pour more money into companies building foundational AI models.

Sam Altman‘s OpenAI finalized a $6.6 billion-share sale at a $500 billion valuation last month, and Reuters recently reported that the ChatGPT maker was eying a $1 trillion initial public offering.

Anthropic closed a $13 billion funding round in September that roughly tripled its valuation from March.

Musk’s xAI is responsible for creating the Grok chatbot that has come under fire for disseminating hate speech, including antisemitic content. The company recently debuted Grokipedia, an AI-powered competitor to Wikipedia.

In March, Musk announced the merger of xAI with X in a deal valuing the social media platform at $33 billion.

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