In today’s tech-driven landscape, artificial intelligence (AI) permeates almost every aspect of our lives. From workplace tools to consumer decisions, AI’s reach is vast. However, the effectiveness of future AI models will hinge on the quality of real-world data they are trained on. This data will primarily come from groundbreaking hardware technologies such as spatial computing, extended reality (XR), and on-device AI. The United States currently holds a commanding lead in these areas, setting the stage for transformative impacts on the global economy and business.

The Synergy Between XR and AI

At the heart of this innovation is the seamless convergence of XR and AI. XR devices, such as virtual and augmented reality systems, collect high-fidelity data that is crucial for training context-aware AI. Marc Benioff, the CEO of Salesforce, succinctly summed up this concept: “AI’s true gold isn’t in the UI or model—they’re both commodities. What breathes life into AI is the data and metadata that describes the data to the model—just like oxygen for us.” This connection between XR and AI is pivotal, enabling smarter, more adaptable AI systems.

Recent breakthroughs, like DeepSeek, a new large language model (LLM) app, exemplify the potential of AI advancements. However, it is the real-world data from XR systems that will drive the development of new applications in robotics, spatial intelligence, and beyond. Yann LeCun, Meta’s chief AI scientist, predicts an entirely new AI architecture within five years, emphasizing the importance of high-quality data from these devices.

The Role of Open Source and Closed Source in AI Evolution

The ongoing interplay between open-source and closed-source software has been instrumental in AI’s progress. They evolve together, fostering innovation, discovery, and collaboration. Beyond operational efficiencies, AI has the potential to unlock unprecedented avenues for discovery and innovation. The wealth of advancements in AI and AI-powered discovery could transform industries, creating vast opportunities for economic growth. U.S. leadership in both XR and AI is critical for such future advancements.

Data and the Future of AI

AI that understands physical places and things depends on the right data. Fei-Fei Li, often referred to as the “Godmother of AI,” has been instrumental in advancing the intersection of AI and spatial intelligence. Her work on large world models and AI systems capable of understanding complex physical environments is laying the groundwork for the future of physical AI. These advancements will enable AI to navigate, interpret, and interact with the physical world more effectively, setting the stage for a new era of human-computer interaction.

U.S. Leadership in XR and Spatial Computing

The United States has been a pioneer in XR hardware from the early days. Notable figures like Jaron Lanier, who coined the term “virtual reality,” and Tom Furness, known as the “Grandfather of VR,” are all Americans. Innovators like Ivan Sutherland, Nonny de la Peña, and companies such as Google, Facebook, Magic Leap, Apple, and Meta have further solidified the U.S. as a leader in this field.

The XR market is projected to reach $96.32 billion by 2029, and demand for XR talent surged by 1,400% in 2020. With companies like Facebook, Apple, Google, Microsoft, Snap, and Amazon hiring thousands of XR professionals, the industry is experiencing rapid growth. According to a 2024 report, the XR industry currently employs over 1.3 million workers.

The Importance of Government Support

Despite this progress, XR is conspicuously missing from the list of technologies receiving R&D funding from Congress. Elizabeth Hyman, CEO of the XR Association, highlights the critical need for investment in advanced technologies to maintain American leadership in XR. Technologies like 5G, AI, and the Internet of Things converge through spatial and XR interfaces, creating a new gateway to the world.

Recent initiatives, such as the Leadership in Immersive Technology Act of 2024 and the Immersive Technology for the American Workforce Act (H.R.3211), demonstrate a commitment to supporting XR and spatial computing. Organizations like the World Bank are already leveraging XR for policy assessment, showcasing the potential for broader adoption.

OpenXR and the Future of XR

OpenXR, a protocol led by the U.S., aims to become the standard for XR devices, regardless of where the hardware is manufactured. By establishing OpenXR, the U.S. can ensure continued leadership in the next frontier of technology, where computing expands into the physical world through AI.

The Race to Replace the Mobile Phone

While DeepSeek garners attention, the broader conversation revolves around the race to replace the mobile phone. The potential impact of new hardware on the world economy and business is as significant as that of the iPhone. This new era could spur a new economic boom, fostering the development of new AI models, architectures, and physical AI systems.

Large Language Models will evolve, joined by Large Action Models, Large Vision Models, and Large World Models. These advancements will redefine how we engage with the physical world, our interactions with each other, and human-computer interaction. OpenXR is one possible path to achieving this goal, leading the way towards a fundamentally spatial, immersive, 3D, and AI-driven era.

Conclusion: The U.S. Must Lead the Charge

The U.S. should prioritize investment in XR and spatial computing to maintain a competitive edge in the next frontier of technology. Collaboration with other world leaders is essential, but U.S. leadership is crucial to shape the future of XR, AI, spatial computing, and their influence on daily life, industries, and global values.

By leading with intention, the U.S. can ensure that the coming era of tech convergence and acceleration is marked by American innovation, setting the stage for a prosperous and transformative future. It’s time for the U.S. to double down on its XR capabilities as we enter this new era of technological evolution.

What do you think about the future of XR and AI? Share your thoughts in the comments below, and don’t forget to subscribe for more insightful articles. Join the conversation on social media and stay ahead of the latest trends in technology and innovation.